What does it pay to lead a Central Valley nonprofit? State records show wide disparity

From issues of poverty to healthcare provider shortages, Merced County is often flagged as one of the state’s most underserved regions.

The county’s median household income of about $53,700 a year lags behind the statewide average of $75,200, according to the U.S. Census Bureau.

California’s Healthy Places Index measures the most disadvantaged ZIP codes in the state not only due to poverty, but other factors like residents’ housing status or education level.

Almost all of Merced County’s zip codes fall within the bottom quartile – the lowest 25% – of the Healthy Places Index.

Community charities are critical in supporting county residents’ various needs. During the pandemic especially, local groups aided in feeding, sheltering and providing direct financial assistance to residents.

Still, these not-for-profit organizations are businesses. A Sun-Star review of several Merced County-based organizations showed what it pays to head a local nonprofit.

Scope of nonprofit’s work

Topping the list is the chief executive of an affordable housing nonprofit. As the longtime CEO of the Central Valley Coalition for Affordable Housing, Christina Alley draws salary and benefits worth more than $570,000 a year, public records show.

Alley earned $441,221 in income from the nonprofit organization, as well as $129,415 in additional compensation in the one-year accounting period ending in September 2019, state records show. The nonprofit reported $7.6 million in revenue and $4.6 million in total expenses that year.

The modest-sized organization employs about 22 people and helps build and manage affordable housing developments around the state for low-income, disabled and senior residents. The nonprofit also does business in Arizona and Washington.

“If we were just in Merced, our budget would definitely be smaller,” Alley said. “We stretch way far.”

State records show that Alley’s total compensation was $486,745 in 2018, $535,505 in 2017 and $485,945 in 2016.

Alley’s compensation stands out in Merced County, where her pay and benefits package is roughly 10 times higher than the average household income. Other Merced County-based nonprofits typically pay their top employees far less than Alley, records show.

Merced County Community Action Agency — the local branch of a national nonprofit that provides direct assistance to the poor — compensated its executive director $147,100 during the 2018-19 accounting period, according to records kept by the California Attorney General’s Office. The organization reported $10.8 million in revenue and $10.7 in expenses.

Another local nonprofit, the Central Valley Opportunity Center, paid its executive director $136,900 in total compensation during the same accounting period. It reported $8.4 million in revenue and $8.5 million in expenses.

Meanwhile, at the Merced County Food Bank, the executive director made a salary of $86,900.

As for public employees, the UC Board of Regents approved UC Merced Chancellor Juan Muñoz’s salary at $425,000 when he took on the job last year. The UC Merced Foundation’s CEO and President Dorothy Leland made more than $527,000 between the 2018-19 accounting period, when she also served part of the year as chancellor of the university.

In an interview, Alley said the complexities inherent to working within the challenging affordable housing system — as well as long hours and time on the road during weekends and nights that accompany them — justify her salary.

She also cited her long history with building the company. Alley has been with the nonprofit since its inception about 34 years ago and acted as CEO for 25 of those years. In her role as CEO, Alley oversees staff who develop and manage properties, conducts oversight for compliance and provides a range of social services for residents.

Getting those properties built is another challenge in itself, she said.

Affordable housing projects are especially expensive to build in California due to the brier patch of funding sources and government approvals needed to bring projects to fruition. It costs more to build government-subsidized apartment complexes for low-income residents in California than any other state, a 2020 analysis by the Los Angeles Times found.

Compared to the other states where Alley’s nonprofit does business, she said it is more difficult to build in California. Fixed low-income rents don’t offset the cost to build and land and construction are expensive. An average deal involves no less than three to four sources of funding, and takes three to five years to get a project finalized.

“I remain focused on helping our organization navigate all of the complex legal, financial, and local government issues involved in developing affordable housing in California,” Alley said in an email to the Sun-Star.

This story was originally published May 13, 2021 at 8:31 AM.