After Ben Stein we now have one concerning the salaries of CEO’s of different charities which I received in my email box this morning from SIX different people. I expect some of you have received the same or will do in the next few days. This is what it says
“Christmas is coming.
Lots of charities will be asking for donations, now more than ever due to the global recession.
While some may have seen this information before, it is something to think about.As you open your pockets for the next natural disaster, please keep these facts in mind:
“The American Red Cross President and CEO Marsha J. Evans salary for the year was $651,957 plus expenses·
“The United Way President Brian Gallagher receives a $375,000 base salary along with numerous expense benefits.
“UNICEF CEO Caryl M. Stern receives $1,200,000 per year (100k per month) plus all expenses including a ROLLS ROYCE. Less than 5 cents of your donated dollar goes to the cause.
“GO “GREEN” INSTEAD AND PUT YOUR MONEY WHERE IT WILL DO SOME GOOD:
The Salvation Army’s Commissioner Todd Bassett receives a small salary of only $13,000 per year(plus housing) for managing this $2 billion dollar organisation. 96 percent of donated dollars go to the cause.”
I remember a similar one doing the rounds the same time of the year in 2010 only that one had broken the figures down to so much an hour these CEO’s were being paid.
The Truth:
According to the Salvation Army, Commissioners W. Todd Bassett and his wife Carol A. Bassett jointly received basic living allowances and grants totaling $64,210 for 2004 plus housing valued at $34,116. That is still considerably less than the salaries of some of the other top charities.
Marsha J. Evans, the president of the American Red Cross, was paid $651,957 in 2004. The president of the United Way is now Ralph Dickerson Jr. who’s current salary is $420,000 per year, according to the Chronicle of Philanthropy.
UNICEF C.E.O. and President Caryl M. Stern earned $478,645 in 2009 according to a Better Business Bureau report. The Better Business Bureau also said that Brian Gallagher, CEO of The United Way earns $1,037,410 in 2008. The American Red Cross President and CEO is currently Gail J. McGovern and NOT Marsha J. Evans who left the post in 2005 following a series of disagreements with the organisation’s board of directors. She left with a severance package valued at $780,000. On many web sites with dates ranging from 2010 right up until today still say Marsha J. Evans is still President and CEO of The American Red Cross.
Whilst some of the information is indeed incorrect it still highlights the incredible salaries the CEO’s of these charities ‘get.’ I can’t bring myself to say ‘earn.’ If the various websites highlighting this want to update their information they can quote iNews Cayman. Gail J. McGovern is paid ‘only’ $500,000 a year but received a $65,ooo SIGNING BONUS! She had to use her hand to hold the pen to write her name to the contract!
Brian Gallagher is still President and CEO of United Way, and currently earns $1,037,140 a year, according to a December 2010 report from the American Institute of Philanthropy.
W. Todd Bassett is no longer National Commander of the Salvation Army. The current National Commander, Israel L. Gaither, is paid somewhere between $79,389 and $243,248 annually for his services. (Since the Salvation Army, as a religious organisation, doesn’t report its expenses to the IRS, the only available figures for executive salaries are estimates, which vary greatly from source to source.)
UNICEF’s Executive Director is now Anthony Lake, who earns $201,351 a year, according to a 2010 communique from the organisation.
Charity Navigator, a website that evaluates and compares the financial health of charitable organisations, says the charities listed above are in the minority. The average CEO salary of the charities they have evaluated is actually $150,000. They also make the point: “These leaders could inevitably make much more running similarly sized for-profit firms. Furthermore, when making your decision [about where to donate] it is important to consider that it takes a certain level of professionalism to effectively run a charity and charities must offer a competitive salary if they want to attract and retain that level of leadership.”