Non-profit groups paying excessive salaries to be scrutinized by the IRS

Your tax dollars:

Good!  And, all I can say is it’s about time!   Here is a story, thanks to Blulitespecial, from the Wall Street Journal that warmed my heart, because it’s a story I’ve done some research on over the years.  

WASHINGTON — An Internal Revenue Service official warned nonprofits to be mindful of executive-compensation practices amid public ire over large bonuses at insurer American International Group Inc. and other Wall Street firms that have received federal aid.

Lois Lerner, the IRS’s director of tax-exempt organizations, told a gathering of lawyers representing charities Monday that scrutiny of nonprofits’ pay practices is likely to increase. Nonprofit leaders should be sure to practice due diligence in making sure their executive pay can be justified through data on comparable practices at similar organizations, she said.

Don’t get me wrong, I think the Obama Administration’s plans to regulate private enterprise and tell companies what to pay its people is an abomination, but  non-profits which are by definition tax-exempt and getting federal grants from tax payers should be regulated.   These so-called non-profits crying ‘oh poor me, send money’ are guilt-tripping little old ladies into sending twenty-five bucks and then turning around and paying a CEO hundreds of thousands of dollars.  It is shameful!

I have firsthand knowledge, through research I did years ago, about many environmental groups doing just that.   Sen. Grassley investigated and forced changes at the multi-billion dollar Nature Conservancy.

Nonprofit pay packages pale in comparison to some of those doled out to Wall Street executives. But a series of charity scandals in the past few years has focused attention on executive pay. Republican Sen. Charles Grassley of Iowa, the ranking member of the Senate Finance Committee, has questioned some nonprofit executive pay practices. Others have said charities’ tax-exempt status – essentially a large taxpayer subsidy – could give rise to more scrutiny in the current political climate.

It’s time now to scrutinize the pay structure of some of the Open Borders Immigration groups, but I won’t be holding my breath.

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