The New York Times dropped a report spotlighting what may be inappropriate business expenditures by GLAAD's chief executive, Sarah Kate Ellis. The Times reviewed expense reports and receipts from January 2022 through June 2023, as well as employment agreements, tax filings, audit reports that seem to show a pattern of lavish spending at GLAAD.
Legal experts said the expenditures were very inappropriate, not illegal, for a nonprofit the size of GLAAD. Where's the rub? In exchange for being exempt from federal and state taxes, non-profits must ensure that executive pay is reasonable and aligned with the charity’s mission and the intent of donors. It looks like the "lavish" expenses were in addition to Ellis’ annual pay, which the Times reported to be $441,000 with the possibility to reach between $700,000 and $1.3 million due to various bonuses. But a GLAAD spokesperson, Richard Ferraro, said they didn't see it that way and told the Times reaching the larger amount would be “practically impossible” and that her compensation package was approved because they were “eager to retain her” due to her success. Fair enough -- great work deserves to be compensated. Unfortunately, scenarios like this give folks a reason to side eye when it looks lavish, especially when they survive and thrive on donations.
In a statement to the Times, Liz Jenkins, the president of GLAAD's Board of Directors said she fully supported Ellis “with respect and appreciation for how she and her team are leading the movement at a time when our community is under attack. We have full confidence that they’re doing so with integrity and that they share the board’s commitment to irrefutably strong governance and business practices.”
Ellis added: “I take my role as GLAAD’s financial steward incredibly seriously, and we’ll continue updating our procedures to keep pace with the organization’s rapid growth.”
We're rooting for GLAAD and Ellis to make sure this gets sorted out. The work they do is invaluable to our community and we need them to stay focused on the fight.