Gleaning Facebook: Non-Profit Millionaires

Nonprofit organizations don’t pay taxes on their net incomes. Their tax-exempt status is the economic equivalent of a subsidy to them, paid by the rest of us. So when nonprofits give their CEOs humongous pay packages, you and I pick up part of the tab. Non-profit hospitals and health insurers are among the worst offenders. It was recently reported, for example, that the CEO of San Francisco-based Blue Shield took home more than $4.6 million last year. Why should taxpayers be subsidizing inequality? My proposal: In order to qualify as a nonprofit, salaries of top executives must not exceed 15 times the median wage (which would cap nonprofit pay this year at around $500,000). What do you think?   - Robert Reich

$4.6 million to head a "non-profit?! That should be criminal. It is a fraud to call an organization non-profit in that situation. That goes for "churches" that build crystal cathedrals and mansions for their "ministers" and "charities" that spend more on salaries and fund-raising than on charity.

Kenneth Copeland's 18,000+ Sq. Foot Lake House in 2011

Comments

Bob Doster

I don't like the high salaries paid to CEO's either, but Mr. Reich did not play fair in his example. This non-profit is not a charitable organization nor a religion. It is an insurance company that is using the tax code to evade taxes.

Donald Murdock
Good point, Bob. I was once CEO of a health related non-profit and chose to take no salary.

Adaïr AIis
You can go to guidestar and see every registered non profit's financial statements to determine which ones to give your money to. There are tons of greedy "nonprofits" out there and their leaders are pretty corrupt. Pretty sad.