More on Charities and Families: Find a Way to Answer “NO” to Form 990, Part VI, Line 2

SDOpera

“XYX YXYXYXYX (WHO SERVES AS GENERAL DIRECTOR AND ARTISTIC DIRECTOR, CEO) AND XXX XXXXXXXX (WHO SERVES AS EXECUTIVE DIRECTOR – DEVELOPMENT AND MARKETING) HAVE A FAMILY RELATIONSHIP”

Their two combined salaries (excluding payroll taxes) to total budget: 6.0%.

Their two salaries to all salaries: 12.7%
These two employees to all 406 employees: 0.5%
Ratio, these two employees’ salaries to all employees’ salaries: 25-1

Current year surplus/(deficit): ($3,239,641)

Are your decision-makers married or in some family relationship? For a for-profit company, that’s fine. Family businesses  and for-profit nepotism are mostly fine.

But charities, owned by the community and answerable to its constituents, are not family businesses. And when they act irresponsibly, like the above arts organization, it’s a travesty that negatively affects the whole industry.

Because now we have to convince supporters that this won’t happen to their donation.

Arrogance, thy name is YXYXYXYX.

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