Corporate Culture in the Nonprofit Sector: A Comparison of Fringe Benefits with the For-profit Sector

Abstract

One explanation that may be given for why nonprofit organizations pay lower wages than do other organizations is that nonprofits are more pleasant places to work. Indeed, some authors have proposed that nonprofit organizations should make an effort to promote a working environment that reflects the beliefs of the organization. This paper uses several proxies for whether an organization is a pleasant place in which to work, and tests for whether nonprofits are more likely to offer such pleasant working conditions. Analysis shows that nonprofits are not more likely to offer these conditions in many instances.