Report on IRS Investigations of Charities

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 13. January 2015 13:45
Although the title of the GAO report released in December 2014 – TAX-EXEMPT ORGANIZATIONS: Better Compliance Indicators and Data, and More Collaboration with State Regulators Would Strengthen Oversight of Charitable Organizations – will not win any awards for elegance, its 66 pages do provide some interesting insights on the IRS review of charities using the Form 990 data. [More]

Tracking Nonprofit Executive Salaries: Recreation/Sports Organizations

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 27. October 2014 14:22
The discussion of whether or not the NFL should have nonprofit tax-exempt status is heating up again, as proposed federal legislation that would end such exemptions is considered. Currently, the NCAA, NHL and PGA Tour do have similar non-profit status, while Major League Baseball gave up its non-profit status in 2007, and the NBA has never been tax-exempt. Of course, tax-exempt status does not mean that the NFL is considered a charity (serving the public good and accepting tax deductible contributions), just that it is a non-profit trade organization and doesn’t pay corporate income taxes. In fact, the NFL does pay taxes on some of its activities. [More]

Pay Raises for Nonprofit CEOs?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 22. September 2014 13:28
It’s autumn, and thoughts of 2015 pay raises are forming in the minds of nonprofit leaders and their boards. At the least, this seems to be the season of the publications of annual reports about pay raises for nonprofit executives. Let’s review some of the findings of recent reports and see how helpful they will be for setting executive compensation that will be market-based and in line with IRS regulations.
[More]

Tracking Nonprofit Executive Salaries: Crime and Legal-Related Organizations

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 18. September 2014 15:27
Before addressing either the obvious question, “Does crime pay?” or, more precisely, “What do the CEOs of Crime and Legal-related nonprofits earn?” let’s take a look at how this type of organization fits within the nonprofit sector in the US. The National Taxonomy of Exempt Entities, the classification system used in nonprofit research and in ERI’s Nonprofit Comparables Assessor, includes Crime and Legal-Related organizations (Major Group I) as a part of the broader division of Human Services organizations. [More]

Is There a Cap on Nonprofit Salaries in NYS – or Not?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 21. August 2014 11:57
New York State Governor Andrew Cuomo issued an administrative regulation in May 2012 that set a salary cap on nonprofit contractors that get more than $500,000 and 30 percent of their revenue from the state – they are not allowed to pay more than $199,000 a year in state money toward an executive’s salary. Some nonprofits that have contracts to provide social services for the state have challenged this rule, and now two judges have come to different conclusions about these executive compensation restrictions. [More]