Mandatory E-filing for Forms 990 – Now a Lawsuit!

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 27. June 2014 08:03
The IRS Forms 990 filed annually by nonprofits can provide valuable information about these organizations, including pay for their executives, fundraising expenses, and names of board members, as well as services offered, and they are available to the public. The problem is the way that the IRS makes the data available – only in an image format so that users must type the needed data into a database before any analysis of multiple forms is possible. Even if the organizations submit their forms electronically, the IRS converts them to images before their release to the public. Currently watchdog groups and others that provide information on charities, including ERI Economic Research Institute, as well as Charity Navigator, GuideStar, and the Urban Institute, have to spend money and time to manually enter the data they get from the IRS before making it available to the public, even if it has previously been digitized. Talk about digital dark ages! [More]

Tracking Nonprofit Executive Salaries: Environmental and Animal Organizations

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 3. June 2014 09:21
So how much does the executive director of “Poodles in Peril” or of “Save Cripple Creek from the Developers” earn each year? How much should he/she make? While these are imaginary organizations, groups with similar names asking for donations seem to be everywhere – in the daily mail, highway billboards, television, and print media. The appeals are numerous and the accompanying pictures and prose are dramatic and engaging, but how do these types of organizations (Environment/Animals, in the National Taxonomy of Exempt Entities, the classification system used in the nonprofit sector) fit into the nonprofit sector? And how much do their executives make compared to similar- sized nonprofits providing other types of services? [More]

The Impact of Salary Caps on NYS Nonprofits

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 18. April 2014 07:40
In New York State, when the state legislature failed to act to place caps on executive salaries in nonprofits providing state-funded human services, the state implemented regulations to achieve the same goal. However, State Supreme Court Judge Thomas Feinman of Nassau County rejected those caps in a recent decision on a lawsuit by the Agencies for Children's Therapy, a non-profit that represents more than 30 agencies that provide early intervention, prekindergarten, special education and other services to children throughout the state. [More]

Should Nonprofits Be Concerned about IRS Review of Executive Compensation?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 4. April 2014 08:55
Last week, the IRS published data on the number of information returns filed by tax-exempt organization in 2012 – 771,675 to be exact – and the number of those returns that were subjected to further examination (meaning the organization was contacted by the IRS for further information, clarification, or a full audit). The number of organizations involved in such an examination of their 2012 returns by the IRS in FY 2013 was 2,882. Most were Forms 990 and 990-EZ (2,744) and the remainder were Forms 990-PF, with a few other forms filed by political organizations and trusts. So, does that low percentage of scrutiny by the IRS mean that nonprofits should have no worries about executive compensation levels? [More]

Compensation for Art Museum Directors: Do Men Really Get Paid More?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 25. March 2014 12:29
The Association of Art Museum Directors recently reported that only 43% percent of art museums in the United States and Canada were headed by women, and salaries of those female directors averaged 79% of the salaries of their male peers. [More]

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