I’m Not The Only One

by Daniel Cuevas

Originally published on Political Storm on December 2, 2004. 

I know this is the time of year when most Americans think about the less fortunate and write checks to their favorite charities. But besides dropping my spare change into a Salvation Army bucket or a Ronald McDonald House coin box, I’ve never really thought about making a substantial donation to a nonprofit organization, about how these organizations are operated, or about how they spend these donations.
Tired of my tax dollars going toward initiatives I don’t believe in (the no-deadline-in-sight occupation of Iraq, the Republican and Democratic National Conventions, the War on Drugs, etc.) I decided this year to look for a charitable organization whose mission reflects my own beliefs and whose donations are tax-deductible.
I visited the Better Business Bureau (BBB) website (www.bbb.org) to see their list of charitable organizations, called the Wise Giving Alliance. In an effort to increase accountability among nonprofits, the BBB offers standards for organizations to follow, to be considered a reputable charity by the BBB.
I’d heard too many stories of organizations that use donations for administrative costs far more than for the mission for which their organization was founded, so I kept that in mind as I searched for one worthy of my tax write-off. At the same time, I wanted to support a cause I believed in. The BBB not only offers a list of literally hundreds of well-known nonprofit organizations, but also offers financial reports for many of them, detailing how they spend their money, what their mission is and how they carry it out.
Upon reading about these organizations on the BBB website, I frequently encountered a disturbing trend: the heads of many of these organizations earned annual salaries that rivaled those of many CEOs of Fortune 500 companies. Here are a few examples of some well-known nonprofit organizations I found on the BBB website who accept tax-deductible donations.
The Christian Children’s Fund, which helps people sponsor underprivileged children in the U.S. and abroad, pays its president, John F. Schultz, $179,257. The American Civil Liberties Union pays its chairwoman, Nadine Strossen, $221,000. Big Brother Big Sisters of America pays its biggest sister, Judith Vredenburgh, $230,050. The Michael J. Fox Foundation for Parkinson’s Research pays its executive director, Deborah W. Brooks, $225,000.
St. Jude’s Children’s Research Hospital pays its executive director, Richard C. Shadyac, $404,812. The March of Dimes didn’t submit the name of their head honcho, but they did report that the secret CEO rakes in about $449,425. The biggest fat cats I found were William D. Novelli of the American Association of Retired Persons at $689,111 and Heritage Foundation president Edwin J. Feulner at $694,693.
Among the BBB’s list of nonprofits were several organizations listed, according to the site, as “Despite written BBB Wise Giving Alliance requests in the past year, this organization has not provided current information about its finances, program and governance.” My guess is that they’re probably too embarrassed to admit how much their directors make. Such tight-lipped nonprofits included the National Rifle Association, the Defeat Diabetes Foundation, Greenpeace, the National Humane Society, the National Pro-Life Alliance, the NAACP and the Southern Poverty Law Center, just to name a few.
I always had this perception of heads of nonprofit organizations being as selfless as their most dedicated volunteers; those altruistic individuals who often put the cause of their organization ahead of their own personal comfort. I understand organizations need full-time people, and that these people need to be paid enough money so they don’t have to get a second or third job, so that their time can be entirely focused on running the nonprofit. I also understand that these nonprofits which pay their directors so much, can do so because they have multi-million dollar budgets.
But, when I learn that the head of one organization makes $689,111 a year, something just seems wrong. If a CEO is demanding that kind of money from a nonprofit organization, perhaps he or she does not share the same passion for the group’s mission as everyone else within the organization. There’s not much selflessness or altruism to speak of when you’re being paid hundreds of thousands of dollars a year.
In defense of the nonprofits I mentioned with their high-priced leaders, according to information submitted to the BBB, all of them spent less than 10 percent of their revenue on administrative costs. For this they deserve a lot of credit. But most people donate money to charities because they care about the organization’s mission, not so overpaid CEO’s can buy another BMW and live a far more luxurious lifestyle than their donors.
By the way, I did find a few silver linings in those greedy dark clouds. People for the Ethical Treatment of Animals, pays its President, Ingrid E. Newkirk, $32,042. The Campus Crusade for Christ pays its President, Stephen B. Douglass, $46,949, and The Dave Thomas Foundation for Adoption’s Executive Director Rita Soronen is paid $97,051.
Perhaps it sounds like I’m nitpicking; bashing organizations which are simply striving to fulfill their missions. I’m not saying these people don’t deserve to be paid well for their major contribution to a particular cause. But giving to an organization knowing that its highest ranking official makes 10 or 20 times more than many of its donors, is a lot like Michael Bloomberg or Donald Trump in the subway in expensive suits you’ll never be able to afford, begging you for spare change. If these organizations insist that “every penny helps,” then why do they pay their leaders like money is no object?
If the Christian Children’s Fund, which pays its director $179,257, suddenly decided to cut this salary by $100,000, and the CEO was still able to live comfortably and more children could be clothed and fed because that extra $100,000 went to them, wouldn’t it be worth it? I believe the people who contribute the millions of dollars to this organization would agree.
So, attention, nonprofit CEOs: keep up the good work, but either keep your annual salaries under $100,000 a year or go find work in the private sector so someone who really cares about the organization can take your place.