Ice Bucket Challenge

[Drago]

Should we start posting some of the 'frum organizations' fillings and returns? I'm sure they're not much prettier....

Actually, yes, those should be posted.
When expenses are too high for no good reason, then that's money being stolen out of the intended recipients hands and should be stopped.

[Dan]

+1

[ushdadude]

Actually, yes, those should be posted.
When expenses are too high for no good reason, then that's money being stolen out of the intended recipients hands and should be stopped.

It's not a new practise. Traditionally tzedaka collectors take a large chunk as their salary.

[Centro]

Actually, yes, those should be posted.
When expenses are too high for no good reason, then that's money being stolen out of the intended recipients hands and should be stopped.

I can imagine which one is on top of everyone's mind as the #1...

[jj1000]

Actually, yes, those should be posted.
When expenses are too high for no good reason, then that's money being stolen out of the intended recipients hands and should be stopped.

Interesting video basically arguing that spending money into a charity is an  investment and is the best way to accomplish what a charity wants.

"Activist and fundraiser Dan Pallotta calls out the double standard that drives our broken relationship to charities. Too many nonprofits, he says, are rewarded for how little they spend — not for what they get done. Instead of equating frugality with morality, he asks us to start rewarding charities for their big goals and big accomplishments (even if that comes with big expenses). In this bold talk, he says: Let's change the way we think about changing the world."

[Emkay]

I can imagine which one is on top of everyone's mind as the #1...

Care to share?

[MarkS]

Be aware that any normal company has high expenses.
Salary is normally the single largest expense at any company.

We may be used to frum Tzedakas run on tight budgets with underpaid employees.

A charity in the non Jewish world needs to be run extremely professionally to attract the big donors and to run the organization.
If they offered salaries of $75K no one would work there because they can earn more in the private sector.

I'm not saying I agree that it's a good way to spend the funds but I'm just saying that it's not unreasonable for them to pay out those salaries.
Informed donators can choose based on this to direct funds elsewhere - but that doesn't mean that ALS is doing anything ethically wrong.

Jewish Charities (non-orthodox) are run similarly with nice salaries for the ones on top.

 

[Drago]

It's not a new practise. Traditionally tzedaka collectors take a large chunk as their salary.

I've heard about that as well.
But if you told donors that 50% of their donation will go to overhead, and the rest will go to the orphaned kallah for her wedding... then g'luck

[AnonymousUser]

Should we start posting some of the 'frum organizations' fillings and returns? I'm sure they're not much prettier....

When I was in yeshiva, I was involved in a tzedakah organization for several years which collected an average of 350k per year from just 2 campaigns, 1 around Purim time and one around Rosh Hashanah. Everyone involved were volunteers, so approximately 95% of the money went straight to aniyim in EY. The rest went to expenses like airfare, car rentals, gas and tolls, CC processing fees, etc. People told us that they wanted to give specifically to us, because that way they know their money is going to aniyim and not some guy's salary. Unfortunate, but seems like it's not uncommon.

[yitzf]

This is a copy from a post about the ALS charity org and their latest tax filing.

This is the ALS Association's 2013 tax return....

http://www.alsa.org/assets/pdfs/form-20990-20-20f2014-20irs-20sgd-2006-11-2014.pdf

Salaries for the leadership of the group:

Jane H. Gilbert – President and CEO – $339,475.00
Daniel M. Reznikov – Chief Financial Officer – $201,260.00
Steve Gibson – Chief Public Policy Officer – $182,862.00
Kimberly Maginnis - Chief of Care Services Officer – $160,646.00
Lance Slaughter - Chief Chapter Relations and Development Officer – $152,692.00
Michelle Keegan – Chief Development Officer – $178,744.00
John Applegate – Association Finance Officer – $118.726.00
David Moses – Director of Planned Giving – $112,509.00
Carrie Munk – Chief Communications and Marketing Officer – $142,875.00
Patrick Wildman – Director of Public Policy – $112,358.00
Kathi Kromer – Director of State Advocacy – $110,661.00

Total administration costs were just under $2 million. “Other salaries and wages” (Part IX line 7) were $3.6 million, with another half million dollars in “pension plans” and “employee benefits.” Expenses for non-employee labor were about $4 million, and “travel expenses” exceeded $1.3 million.

So total costs for labour to run the association was around $12.5 million, from revenues received totaling $24 million.

Over 50% of what the ALS Association receives appears to support salaries of people working for the Association, based on these tax returns.

I really don't see the whole issue here. Firstly as MarkS said they need to attract talent to run the organization professionally. Secondly, the total compensation of Officers and key employees is only 1.3 million. The other salaries and wages can be to pay regular employees who do the work of the organization. We aren't talking about a manufacturing company that produces goods, rather they are trying to find a cure for ALS. They way to do that is to hire people to work on advocating, lobbying etc. for a cure. I wouldn't be surprised if 90% of  revenue went to salaries, as long as it's for the people doing the good work and not just getting the people on top rich.

[meshugener]

Be aware that any normal company has high expenses.
Salary is normally the single largest expense at any company.

We may be used to frum Tzedakas run on tight budgets with underpaid employees.

A charity in the non Jewish world needs to be run extremely professionally to attract the big donors and to run the organization.
If they offered salaries of $75K no one would work there because they can earn more in the private sector.

I'm not saying I agree that it's a good way to spend the funds but I'm just saying that it's not unreasonable for them to pay out those salaries.
Informed donators can choose based on this to direct funds elsewhere - but that doesn't mean that ALS is doing anything ethically wrong.

Jewish Charities (non-orthodox) are run similarly with nice salaries for the ones on top.

+100

[Baruch]

If the guy that comes up with the ice bucket challenge doesn't get paid well, he will come up with Geico's next ad campaign instead. And the ice bucket challenge doesn't happen.

[elit]

Agree if the foundation isnt doing much that could justify the salaries then it's a problem but if they accomplish a lot then i dont see the problem in paying for quality employees

[MarkS]

I recall having a discussion about this before -

Here it it: http://forums.dansdeals.com/index.php?topic=23686.0

[EJB]

If the guy that comes up with the ice bucket challenge doesn't get paid well, he will come up with Geico's next ad campaign instead. And the ice bucket challenge doesn't happen.

Do you think he'll be highly compensated for the idea?

[Joe4007]

Do you think he'll be highly compensated for the idea?

Point is if they'd only offer a 50k salary, people like this won't be working there.

[Baruch]

Do you think he'll be highly compensated for the idea?

He'll probably get a well paying job at a non profit, or an even better paying job on Madison Avenue.

Pretty impressive first line on his resume: Creator of the Ice Bucket Challenge.

[ushdadude]

Do you think he'll be highly compensated for the idea?

http://tvnz.co.nz/world-news/ice-bucket-challenge-co-founder-drowns-aged-27-6061274

[Drago]

When I was in yeshiva, I was involved in a tzedakah organization for several years which collected an average of 350k per year from just 2 campaigns, 1 around Purim time and one around Rosh Hashanah. Everyone involved were volunteers, so approximately 95% of the money went straight to aniyim in EY. The rest went to expenses like airfare, car rentals, gas and tolls, CC processing fees, etc. People told us that they wanted to give specifically to us, because that way they know their money is going to aniyim and not some guy's salary. Unfortunate, but seems like it's not uncommon.

Agreed.

Listen, we need to differentiate btw charity which is meant to
A) help an end user,
B)  intended to 'raise awareness' or advocate for public funding.

The first has little justification for high expenses, the second could spend 100% on overhead, and that might be okay if they managed to schnorr millions from the government.

[moish]

Pretty impressive first line on his resume: Creator of the Ice Bucket Challenge.

in 5 years nobody will remember it