Comparability data for small nonprofits: what the rule asks for and where to get it

The intermediate-sanctions regulation gives small organizations a lighter evidentiary path. 26 CFR 53.4958-6(c)(2)(ii): an organization with annual gross receipts (including contributions) under USD 1 million "will be considered to have appropriate data as to comparability if it has data on compensation paid by three comparable organizations in the same or similar communities for similar services."

The regulation names three conditions for the rebuttable presumption of reasonableness: approval in advance by an authorized body without a conflict of interest, reliance on appropriate comparability data, and contemporaneous documentation. This page and our reports touch only the second, and only as a data compilation. Whether organizations are "comparable" and communities "similar" is the board's determination; this is not legal or tax advice.

What public filings can supply

Every Form 990 lists officers, directors, key employees and highest-compensated employees with title, hours and reportable compensation (Part VII); Form 990-EZ lists officers with compensation (Part IV). That is public data, released by the IRS as e-file XML and mirrored on ProPublica Nonprofit Explorer. Across 226,109 filers with revenue USD 100k-5M, latest Form 990 or 990-EZ e-filed in 2025-2026, 42.3% report paying at least one person; the medians by revenue band are on the pay by state page.

What the USD 79 sheet contains

• The 3 closest organizations (same 3-character NTEE code, revenue 0.5x-2x, nearest geography) that report a paid top officer: name of the organization, state, tax year, total revenue and expenses, top officer title, reportable compensation, hours per week as filed, and the filing link.
• Your organization's own line from its latest filing.
• The regulation text above and the sentence that the sheet supports but does not by itself establish the presumption.
• It sits behind the full USD 49 peer report (10 named peers, split, reserves, revenue mix, percentiles).

See the sample, which includes the sheet, before buying. Reportable compensation excludes benefits and deferred pay; if your board needs total compensation, the filing link on each row leads to Part VII columns E and F.