What should a charity CEO be paid?

Mention “six-figure charity CEO salaries” in a bar and watch the eyebrows rise. Some people gasp at the audacity—“Isn’t it meant to be for the cause?” Others nod sagely, pointing out, quite reasonably, that running a £50 million charity isn’t exactly a hobby.

So who’s right?

As ever, it’s complicated. But it’s also fascinating. Because behind the spreadsheets and pay bands lies a story about purpose, perception, and the peculiar pressures of doing good at scale.

This piece unpacks what charity CEOs in the UK actually earn, what drives those numbers, and why it matters—not just to donors and boards, but to every volunteer, staff member, and supporter in between.

1. What do UK charity CEOs actually earn?

Spoiler: it varies. Wildly. And for good reason—running a volunteer-led foodbank in Derbyshire isn’t quite the same as overseeing a global health charity with thousands of staff.

Here’s a rough breakdown:

  • Small charities (< £1m income): CEO salaries tend to hover around £50k–£60k—if there’s a CEO at all. Many are part-time or volunteers.
  • Mid-sized charities (£1m–£5m): £75k–£85k is common.
  • Larger charities (£5m–£10m): Expect £100k–£150k.
  • Top 100 charities: The median salary is now around £192,000. That’s up from £175k in 2023 and £155k in 2019. Some go far higher—Wellcome Trust’s CEO earns over £440,000. At Nuffield Health, it’s over £1.2 million.

Yes, that last one tends to dominate headlines. But raw numbers can be misleading without context. Running a charity with complex legal, financial, and reputational responsibilities is a serious gig. And yet…

2. What actually drives charity CEO pay?

Turns out, the things that push up pay aren’t the things most people assume.

a) Size matters

This is the single biggest factor. Bigger organisations—with bigger budgets, more staff, and heavier responsibility—tend to pay more. A 10% jump in income can lead to a 2–4% bump in CEO pay. Seems reasonable, right?

b) Governance quality

Here’s where it gets counterintuitive: better governance = higher pay. Why? Because strong boards and remuneration committees are more likely to benchmark salaries professionally, rather than pluck numbers out of the air or bend to PR panic.

c) The CEO’s background

Experience, qualifications, and tenure all matter—but in a twist of sector irony, prior nonprofit experience can lower expected pay. The unspoken logic? “You’re in it for the mission, not the money.” Lovely. Also slightly problematic.

d) Who’s paying the bills

Charities reliant on government funding tend to keep salaries lower, often due to public scrutiny or funder expectations. You’ll rarely find a flashy CEO pay packet in a grant-heavy organisation.

e) The sector itself

A children’s hospice and a cutting-edge medical research charity have different operational scales, and different pay expectations to match.

3. Is CEO pay tied to performance? Not really

This might be the strangest twist of all. Unlike the private sector—where performance-linked bonuses are common (and controversial) - UK charities rarely tie pay to outcomes. The data? Thin. The performance metrics? Often qualitative, or indirect.

Nguyen’s 2016 study found no strong link between performance and pay. So what determines salary? Governance and size. This begs the question: if the pay doesn’t reflect impact, what incentive structure does?

4. Does high pay hurt the mission?

It might. Not always. But when it does, it stings.

When CEO pay feels excessive - especially in organisations built on goodwill and volunteer labour - it can damage morale and trust. In fact, research from Maas & De Waegenaere (2021) showed that high CEO pay, when publicly scrutinised, leads to a drop in volunteer contributions. Not in theory—in practice.

Staff may also feel the pinch. Xing’s research found that perceptions of unfairness around executive pay can lower morale and increase turnover.

And in a sector where you’re often paid less for doing more, those feelings are not irrational—they’re structural.

5. Perception is everything: the transparency test

Here’s the uncomfortable truth: most people don’t object to fair CEO pay. They object to pay that feels disconnected from purpose.

Transparency helps bridge that gap. When charities explain the rationale behind salary decisions—clearly, contextually, and openly—trust follows.

Opaque salaries create suspicion. Published ranges, benchmarking data, and governance notes reduce it. As in most things, daylight is a great disinfectant.

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6. UK vs US Charity CEO pay: a quick comparison

Short answer: the US pays more, in bigger organisations.

  • Small Charities (< £1M / $1M income):
    • UK: £50,000–£60,000
    • US: Approx. $65,000
  • Medium Charities (£10M–£50M / $10M–$50M):
    • UK: Around £175,000
    • US: Around $196,000
  • Large / Top Charities:
    • UK: £192,000 median, with some earning over £400,000
    • US: Median around $484,000

The same patterns apply - bigger orgs, bigger pay - but the ceiling is higher in the US, partly due to a more aggressive fundraising culture and donor-driven competition.

7. So… What’s fair?

That, ultimately, is the real debate. And it’s not purely about numbers. It’s about balance.

Boards must weigh the complexity of leadership against public sentiment, the importance of talent against the symbolism of restraint. That’s not easy. But it’s necessary.

The best approach?

  • Benchmark transparently
  • Communicate clearly
  • Stay aligned with mission and values
  • Be prepared to explain, not just justify

Because this isn’t just a line item on a budget. It’s a signal. And in a sector built on trust, those signals really matter.

The bottom line

Charity CEO pay is less about greed and more about governance. Yes, there are outliers. But for the most part, salaries reflect the real-world demands of running large, high-stakes, emotionally charged organisations.

The question isn’t “Should charity CEOs be paid well?” It’s “What does well mean in a world where values matter as much as results?”

And perhaps more provocatively: What are we really saying when we demand frugality from our leaders, but expect brilliance all the same?

We know the charity sector. And its scrutiny.

We provide digital strategy services tailored to mission-led organisations and institutions navigating public pressure and ethical complexity. We've worked with UN agencies as well as British institutions - such as the UN Peacekeeping Mission, Housing for Women, and Habitat for Humanity - across multiple social and environmental causes.

What we can help with: 

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Sources

  • Nguyen, T. (2016). An Investigation of Accounting, Governance and Executive Compensation Practices in UK Charities
  • Nguyen, T. &  Soobaroyen, T. (2020). Governance and CEO Compensation in UK Charities
  • Ndoro, G. (2012). Executive Compensation and Firm Performance: Evidence from UK Charities
  • Maas, W. & De Waegenaere, A. (2021). Excessive CEO Compensation and Volunteer Contributions
  • Xing, Z. (2012). Utility Evaluation of the Irrationality of CEOs' Compensation