Photo by David Hansen
Foundation for Affordable Housing is based in Laguna Beach and has the highest total revenue among the city's nonprofits.

The profits of non-profits

By David Hansen
Editor, Under Laguna
October 14, 2021
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With its deep pockets, generosity and entrepreneurial zip code, perhaps it’s not surprising that Laguna Beach is the non-profit capital of the West. But it is surprising how profitable nonprofits can be for some executives.

In a new report, the Pulitzer Prize winning investigative news team at ProPublica released an online database that analyzes executive compensation for all listed nonprofits in the country. The stats for Laguna Beach are all across the board.

As a percentage of expenses, executive compensation is usually less than 10% for most nonprofits, especially with budgets under $1 million. In fact, anything more than that raises eyebrows with boards of directors and even the IRS. But major nonprofits with budgets in the tens of millions sometimes use a percentage from 1 to 2.5 percent, according to industry analysts.

In Laguna Beach, ProPublica lists 410 nonprofits. More than half don’t report any revenue at all. However, there are some very large nonprofit organizations operating out of Laguna – with executive salaries to match.

For example, the Foundation for Affordable Housing hands out more than $2 million in executive salaries, but it also has more than $27 million in annual revenue spread out among its many operations.

By contrast, most small nonprofits offer either modest or no executive compensation.

Remember that with a population of less than 23,000, Laguna Beach is considered a small town, but it has more nonprofit groups per capita than any state in the U.S. – by a long shot. The only area that has more nonprofits per capita is Washington D.C. In other words, per 10,000 people, Laguna has about 180 nonprofits. D.C. has 232. The closet state is Vermont with 112.

Here is a list of the top 30 nonprofit organizations in Laguna Beach by recent annual revenue, along with the executive compensation as a percentage of expenses. This information comes directly from ProPublica, with links to the individual organizations for more information.

In the end, most nonprofits struggle to break even. But not all. And the difference can be dramatic.

Laguna Beach top 30 nonprofits by revenue

Company NameNTEE ClassificationAnnual
revenue
Exec. Compensation
(% of total expenses)
Fiscal year
LAGUNA COLLEGE OF ART AND DESIGNHigher Education Institutions$27,712,8572.50%2019 – 2020
FOUNDATION FOR AFFORDABLE HOUSING INCSenior Citizens’ Housing/Retirement Communities$24,180,0531.70%2019
ASSE INTERNATIONAL INCInternational Student Exchange and Aid$8,045,3306.30%2019 – 2020
THE LAGUNA PLAYHOUSETheater$5,463,7747.70%2019 – 2020
FRIENDSHIP SHELTER INCHomeless, Temporary Shelter For$5,180,0054.30%2019
EURAUPAIR INTERNATIONAL INCInternational Exchanges, N.E.C.$5,061,32010.70%2018 – 2019
LAGUNA FOOD PANTRY$4,493,5005.40%2019 – 2020
LAGUNA BEACH COMMUNITY CLINIC INCAmbulatory Health Center, Community Clinic$4,425,30521.50%2019 – 2020
FRIENDS OF THE SEA LION INCWildlife Sanctuary, Refuge$4,245,83019.60%2019
STARS & STRIPES CHILDRENS FOUNDATIONFund Raising and/or Fund Distribution$4,071,1740%2019
SOUTHEAST AFFORDABLE PRESERVATION INCPublic Housing Facilities$3,325,3160%2019
LAGUNA ART MUSEUMArt Museums$3,095,54510.20%2018 – 2019
GLENNWOOD HOUSING FOUNDATIONHousing Development, Construction, Management (L24)$2,338,2325.10%2019
SAWDUST FESTIVAL CORPORATIONArts, Cultural Organizations – Multipurpose$2,306,0574.20%2019
BOYS AND GIRLS CLUB OF LAGUNA BEACHBoys and Girls Clubs (Combined)$1,800,7888.00%2020
FOUNDATION FOR AFFORDABLE HOUSING VI INCHousing Development, Construction, Management$1,744,5300%2019
FOUNDATION FOR AFFORDABLE HOUSING V INCHousing Development, Construction, Management$1,610,03448.50%2019
HELPING HAND WORLDWIDE INCEmergency Assistance (Food, Clothing, Cash)$1,492,8670%2020
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES$1,416,0970%2019
LAGUNA CANYON FOUNDATIONFund Raising and/or Fund Distribution$1,332,1967.60%2019 – 2020
FOUNDATION FOR AFFORDABLE HOUSING II INCHousing Development, Construction, Management$1,220,16068.40%2019
PROJECT SCIENTISTEducation N.E.C.$1,137,17911.10%2019
FESTIVAL OF ARTS OF LAGUNA BEACHArts, Cultural Organizations – Multipurpose$1,043,2242.50%2019 – 2020
NEURO DEVELOPMENTAL TREATMENT ASSOCIATION INCNeurology, Neuroscience Research$970,2840%2019
LAGUNA BEACH HOSPITALITY ASSOCIATION INC$968,8696.90%2020
LAGUNA BEACH EDUCATION FOUNDATIONElementary, Secondary Education, K – 12$872,1710%2019 – 2020
LAGUNA BEACH SENIORS INC$825,72617.80%2020
GENERATION OF YOUTH FOR CHRISTProtestant$755,3360%2019 – 2020
SOCIAL COMPASSION IN LEGISLATIONAlliance/Advocacy Organizations$701,98914.00%2019
MY HERO PROJECT INCEducation N.E.C.$676,04912.80%2019 – 2020
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