Scrutiny of NPOs in the Media

NPOs under “Close Observation”

According to a recently published report in Newsday on August 4, 2011, reports of high salaries and other compensation at non-profit agencies are prompting investigations by a special task force assembled by New York Governor Andrew M. Cuomo. Cuomo estimated that approximately 2,000 nonprofit workers are receiving compensation in excess of $100,000 annually.  Another investigation is being concurrently conducted by a task force assembled by Attorney General Eric Schneiderman, whom is attempting to “improve the efficiency and accountability” of non-profit agencies that use state funding to conduct their social service programs. Currently, nonprofit agencies employ more than 17% of New York’s workforce.

The article also cited a recent New York Times article detailing how two executives of a NYS non-profit received nearly $1 million a year in compensation and their compensation package also included a tuition reimbursement program for their children’s college education.

Ostensibly, these investigations are attempting to ensure that taxpayer dollars are being used in a fiscally sound way, and that non-profit organizations are using their resources to service local communities and not for “excessive compensation.”