normative

Compensation Should Use Cost-Benefit Not Cost Alone

Charities should evaluate compensation through cost-benefit analysis rather than cost alone: a fundraiser paid $80,000 who raises only $160,000 is more expensive than one paid $300,000 who raises $3 million, yet the sector only ever asks what a person costs and never what value they produce, applying a religious rather than rational lens.

normativepending

Speaker

Dan Pallotta

Evidence Quote

No first-year business school student would survive past the first semester if they didn't show the ability and the inclination to do a cost-benefit analysis. So the question is not what does the person cost. The question is: What value is the person producing for that cost?

Source

Dan Pallotta on Charity and the Culture of the Non-Profit SectorEconTalk
Created: 6/13/2026, 12:09:33 AM

My Notes

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