Tuesday, April 21, 2009

Blumner: Fat cats of the not-for-profit world should go on diet

The following editorial by Robyn Blumner appeared in the The St. Petersburg Times. Blumner relates that:

Everyone knows that Wall Street financiers and the nation's corps of CEOs are paid too much. We see CEO pay at 275 times that of average workers, and executives on Wall Street awarded seven-figure bonuses even when their investment firms are dead men walking.
But what has been bothering me recently, as the economy has soured and more people are in need of charitable services, is the pay of a different sort of CEO. The people who run many of our nonprofits, such as hospitals, educational institutions and social service charities, are also hugely overpaid.

These leaders run organizations that reap substantial tax savings because they engage in socially valuable enterprises. But too many of the dollars they raise seem to be going into their own pockets. Read more here.

Is this kind of reaction a growing trend? How can the majority of nonprofits, who don't have this level of compensation work, to address the perception issue raised here? Share your opinon here.

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