CEO’s of Non-Profits should have salary caps

The Press of Atlantic City had a great editorial this morning. They are advocating that non-profits that receive the bulk of their money from the state should have salary caps for CEOs.

Should the CEOs of private, nonprofit social-service agencies have to submit to salary caps if they receive most of their funding from the state?

Sounds reasonable to us. The idea is being floated by the state Department of Human Services, which relies on community social-service agencies to serve the needy, the mentally ill and those with developmental and physical disabilities. These groups often receive most of their funding from the state.

Under the DHS proposal, CEOs’ salary limits would be on a sliding scale tied to the size of their organizations’ budgets – with those overseeing the biggest budgets being able to earn as much as $141,000, and those overseeing the smallest budgets permitted a maximum of $105,750. Organizations that exceed the CEO salary limits could lose state funding.

It sounds reasonable to me. They should also not be allowed to receive perks such as free cars, clothing allowances, and such.  I would like to se Lou Magazzu take this one step further and insist on salary caps for CEOs of non-profits that receive county funding. As hundreds of workers are fired on the county, municipal and township level this year, it is a slap int he face to earmark hundreds of thousands of dollars to some non-profits whose CEO’s earn well over the $141,000 cap recommended by the Department of Human Services.

Would Lou agree with this?  Would he be behind a county statute forcing irresponsible non-profits to reign in reckless spending such as this? Or will he remain silent and stand behind his friends and cronies raking in big bucks, financed by the taxpayers – the same taxpayers losing their jobs, their homes, and cutting back on necessities in this time of fiscal crisis?

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12 Responses to CEO’s of Non-Profits should have salary caps

  1. jobba says:

    Didn’t kaletkowski at the hospital get like a million dollars one year and close to that last year? If a non-profit can only get 105k how do we explain Gloria?

  2. Calhoun says:

    Gloria Noto is an elected official. If the citizens don’t like what she takes as a salary, then they can vote her out when she is up for re-election. The citizens had that opportunity last November and they re-elected her. So that’s how you explain Gloria.

    Your other example, Chester Kaletkowski, who is SJ HealthCare’s CEO and President, has more merit but not much. First, SJH is not a hospital but three (Elmer Hospital, the Regional Center Center in Vineland, Bridgeton health Center); it also performs a myriad of outpatient services at a number of locations.

    Yeah, SJH is a nonprofit under federal 5013c, but healthcare nonprofits are a special case to say the least. First SJH is a huge entity with a ton of employees many of whom are highly educated (doctors, lawyers, nurses etc.), and all of whom are under Mr. Kaletkowski. I do not know what Kaletkowski makes, but I do know you could not pay me enough to do his job.

    The AC Press editorial (and DHS proposal) was focusing on social service nonprofits, which do not have a variety of funding sources, but rather rely largely or exclusively on government grants and contracts. The focus was not on healthcare nonprofits, which is a whole different ball of earwax.

    Using Mr. Kaletkowski’s salary (whatever it may be) at SJH to justify large salaries by CEOs of small social service non-profits is ludicrous. Also, Jobba, your 105K reference is misleading. The proposal being floated by DHS would cap administrative salaries at the targeted non-profits at a range of $105,000-141,000.

  3. Gilgamesh says:

    Lou won’t agree to this absurd proposal! How do you expect him to take care of his loyal followers and sycophants?

  4. Bridgeton Gary says:

    maybe MW needs to look up the salaries of the non profits they are targeting. It is public record I think. It’s easy to criticize the work of others if you concentrate on the emotional impact and ignore the facts. Tell us who and what and then we can decide to agree or not.

  5. WuLi says:

    Well, Gary, since you bring it up, let’s single out Lou Magazzu’s favorite non-profit.

    The scandal-ridden Tri-County Action Agency headed by Al Kelly is a $40 million money-hole. They apparently have carte-blanche to receive county tax money without RFPs to funnel wherever they want.

    This agency has been in the news several times lately. In a news article dated February 26, 2010 we learned that the HEA Manager used her position to steal public heat assistance money to benefit several family members.

    Campbell admitted that she used her position as an HEA manager for Tri-County Community Action Partnership to process false HEA applications for herself and five family members who were indicted along with her in August. Tri-Community Action is a nonprofit contracted by the state to administer the HEA program in Cumberland, Gloucester and Salem counties.

    More recently we learned that Al Kelly, candidate for mayor of Bridgeton used Tri-County employees, on Tri-County time, utilizing Tri-County resources to send campaign related emails. This is a total disregard for ELEC regulation and a violation of law.

    You ask about salaries. President Al Kelly received close to $170,000 in compensation. Vice President Ed Bethea received about $130,000. Susan James, Housing VP, received almost $102,000, and Ronald Johnson, Director of Finance, received almost $92,000.

    According to GuideStar, the 990 filed by this non-profit in 2008 for 2007 (there is no more recent 990 online) stated a revenue of over $41 MILLION.

    Of that $41 Million, almost $300,000 was devoted to “compensation of officers, CEOs and key employees” (line 25A). Another $11.3 MILLION (line 26) was spent on “salaries”. So basically, 25 cents of every dollar of taxpayer subsidization goes to salaries.

    $60 thousand went to pension plans. Another $2.5 MILLION went to “other employee benefits” (line 28).

    They spent $6.5 MILLION on “Travel”. $1.8 MILLION for “Supplies”. $2.7 MILLION for “Occupancy”.

    Wait – their mission statement according to GuideStar is “To Eliminate poverty and its causes”. I guess they are doing it one employee at a time, because there appears to be less and less money devoted to their mission with every added expense!

    So Gary, you tell me – does the plan to limit executive salaries of non-profits that are funded by our tax dollars make sense? Huh? I can’t hear you!

    You be the judge

  6. Calhoun says:

    Carl, you instruct us to be the judge. However, have you forgotten that you live in Cumberland County? And in our county you just don’t get to be a judge. First, you have to have your law firm give thousands of dollars to the the Cumberland Co. Democratic Organization. Then you yourself have to contribute heavily to the Dems. After that and after much service (e.g., county counsel), Lou then may see fit to “recommend” to the governor that you to be a judge.

  7. jobba says:

    wow wuli. all twisted up? Maybe you should inquire about the “other benefits” category. I’m no judge but I would say that if you think there is something afoot here it is your opportunity to set things right. Use the power Luke.

  8. WuLi says:

    Jobba, Are you implying that the $160,000 set of wheels that Al Kelly drives might not have been purchased with his own earnings?

  9. Gilgamesh says:

    Does the mission statement specifically mention eliminating poverty for all? Because, if they are just eliminating poverty for all of Lou’s friends; and those friends live in county then the mission statement isn’t off!?

  10. LANDISAVE says:

    Can we fine out who in the County that are employed by the non-profits make $$$$$

  11. WuLi says:

    If you have a GuideStar membership, you can find any of the information that is filed. A simple registration will give you access to 990’s and names of board members, etc. A paid subscription provides salaries and more detailed balance sheets. It’s not cheap.

  12. Barry T says:

    Look at California’s hidden shame. California has a unique way they deliver services to disabled people. It starts with California’s Department of Developmental Services (DDS), a state agency that contracts with 21 Regional Centers to provide services and supports to individuals with developmental disabilities, including mental retardation, cerebral palsy, epilepsy, autism and related conditions. What few people know, however, is that each Regional Center that gets state and federal funding, is a non profit agency, and inside each of the 21 Regional Center’s, the Executive Director of nearly every 21 of these centers, is making upwards of a HALF a MILLION a year. Shame on California for cutting services to disabled, while condoning outrageous salaries for executive directors of California’s regional centers for disabled.

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