I work at a non-profit (although not one that fundraises and solicits donations), and while I do earn less than could make in the private sector, I still fully expect to be paid at a level commensurate with my skill and experience. If you want to attract good people you have to pay at least close to what they could make working somewhere else.
Yup. There's definitely some neighborhoods like Great Falls where it seems like everyone is either a corporate exec, a federal politician, or a pro athlete.