The Gay and Lesbian Alliance Against Defamation (GLAAD) has come under a financial microscope following allegations of “lavish” spending and possible IRS violations.
NYT vs GLAAD
Emily Steel from the New York Times opens up her article A Pattern of Lavish Spending at a Leading L.G.B.T.Q. Nonprofit with:
A light rain fell at the Zurich airport one Sunday morning in January 2023 as Sarah Kate Ellis made her way from a seat in Delta’s most exclusive cabin to a waiting Mercedes. It was there to chauffeur her to the Swiss Alps, where she and her colleagues would stay at the Tivoli Lodge, a seven-bedroom chalet that cost nearly half a million dollars to rent for the week.
Ms. Ellis, who was en route to the World Economic Forum in Davos, doesn’t run a Wall Street bank or a high-flying tech start-up. She is the chief executive of the nonprofit organization GLAAD, one of the country’s leading L.G.B.T.Q. advocacy groups.
Steel continues to say that GLAAD CEO Sarah Kate Ellis has a documented history of flying first class, staying at luxury hotels, using high-end car services, and receiving a generous annual compensation package. for GLAAD compensation here is GLAAD’s latest Form 990 (a link to the PDF if hard to see, info on page 7).
Steel, through interviews and viewing internal documents, also found that Ellis receives a $25,000 summer rental allowance for a home in Cape Cod and up to $20,000 for home office renovations, but GLAAD did not classify these expenses as income, potentially violating IRS rules.
Anything Illegal?
Michael West, a lawyer at the New York Council of Nonprofits, stated that GLAAD’s spending on Ellis represents “a potentially abusive use of charitable funds” and could be surprising and insulting to many donors. He added that Ellis might have fallen into “the trap of excess.”
What Do The Activists Say?
Mark Segal, a Stonewall Riots participant, founding member of the Gay Liberation Front NY 1969-71, and founder of Gay Youth, has been involved in LGBT civil rights since he moved to New York in May 1969. He adds his voice to the discussion in his Op-ed: GLAAD’s Sarah Kate Ellis Bought Chandelier With Your Donations in the Georgia Voice.
Of course, GLAAD spokesperson Richard Ferraro has attempted to defend her, spouting lines similar to, “She’s going to comply with new rules,” “She needed the lavish housing for meetings,” and “We don’t think she can get that bonus in her final year of $1.3 million.” Nothing is said about the $150,000 signing bonus, a $250,000 exit bonus, nor how her yearly bonus system works. For a group focused on communications, Mr. Ferraro gets an F in communicating.
Mr. Ferraro wasn’t even transparent on the issue of yearly bonuses. In the last few days, I’ve spoken to many LGBT pioneers who’ve been fighting for equality for over 50 years. Most of us request that Sarah Kate Ellis never again describe herself as an activist, since many of us view her as a profiteer.
The word about GLAAD is that they are more interested in hobnobbing with celebrities to bring in donations.
That last line does hurt, doesn’t it? We do see awards given to people we already hold in high esteem, people that are already fighting the good fight, people that have homes full of trophies and awards already.
We’re All Good Here
In response, GLAAD disputed any tax violations, explaining that they consulted with attorneys who advised that the renovations were work-related and not income. The organization defended Ellis, noting that since becoming CEO in 2014, she has quintupled GLAAD’s revenue to $19 million by 2022.
Liz Jenkins, a chairwoman for the organization, expressed strong support for Ellis, commending her leadership during challenging times for the LGBTQ community and emphasizing the board’s confidence in her integrity and commitment to strong governance and business practices. Ellis also issued a statement asserting her dedication to responsible financial stewardship and commitment to updating procedures to match the organization’s growth.
Will There Be Change If Needed?
Do you think this news will hurt GLAAD? Will there be a restructuring of staff or how funds are spent? How much should a CEO of a non-profit make? It does take money to make money, but how much? Does GLAAD cater to the already famous crowd and does that transparent catering help raise donations and help GLAAD do what they do?
Sources: Georgia Voice , New York Times , FoxBusiness
UPDATE – GLADD RESPONDS
I’ll just cut and paste the email I received from GLADD on Tuesday 8/6. Read at your leisure.
GLAAD’s Board of Directors wrote a letter yesterday refuting the New York Times article: https://glaad.org/a-message-from-glaads-board-of-directors/
Attributable to Sarah Kate Ellis: “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. Our work has never been more urgent, because the LGBTQ community is under increasing attack. Politicians, extremists and even mainstream media outlets are undermining our efforts for equality and pushing dangerous narratives about our community. We won’t stop fighting for acceptance and working as hard as we can, every day, to stand up for our community.”
Attributable to a GLAAD spokesperson:
“It is disappointing but not surprising, especially at a time when LGBTQ violence and anti-LGBTQ legislation are growing, that the Times committed significant resources to spin a negative story about GLAAD by reporter Emily Steel, who last year signed a letter that criticized concerns from GLAAD and other LGBTQ leaders about coverage of transgender people in The New York Times. The tabloid-esque article excludes much of our critical advocacy work and grossly mischaracterizes the organization, which consistently garners top marks from charity rating organizations. The Times should spend more time and resources bringing its coverage of transgender people up to par.”
“The Times has refused to implement the reforms suggested in the open letters, and GLAAD has continued its campaign to advocate for unbiased and accurate reporting about trans people in the Times. This has included sending a billboard truck to park outside on the Times’ offices eight times, posting more than one dozen posts critical of the Times’ coverage across GLAAD social media accounts and website. On March 26, 2024, GLAAD and non-profit Media Matters for America published an analysis of Times coverage demonstrating that the newspaper does not include perspectives from trans people in a majority of its publications about transgender healthcare and anti-trans legislation. Over the last 15+ months, The Times has not engaged on the campaign’s main ask: to sit down with transgender leaders.”
I’ve worked in volunteer and leadership roles in the not-for-profit world since the 1970’s. It’s certainly true that, in order to raise money you have to spend it, and if you want to attract well qualified professionals to paid positions within your organization, you generally have to pay competitive salaries. But it’s unheard of, and unconscionable, that a single salaried position within any non-profit would account for more than 20% of that agency’s total annual income! Business class air travel, car and reasonable home office allowances aren’t untoward. Liveried transport, five star accommodations, and a $25K vacation rental allowance are far beyond the “norm” for top executives of similarly-sized charities. My future donations are certainly going to be directed elsewhere.
OUTRAGEOUS !!!! Where was the need to go to a lavish Swiss Alp Lodge at GLAAD’s expense? Yes increase in revenue is great but excessive spending is outrageous.
GREEDISM
Very Disappointed! It is too much money bring spent and given to head of a non-profit organization. and especially for GLAAD. One should get a good Salary, but NO bonus of special payments for doing their job. If a long flight yes not coach… but how about Business instead of First Class. The Mercedes for transfer is RIDICULOUS! I have worked for many non profits and especially LGBT organizations almost all of them I have done pro bono (and hated my expenses as a donation). As stated, the head should receive a very could SALARY, but no bonus and this extra waste of money for luxury. I have donated in the past and attended some of the Galas. But my small donations will now go to another worthy cost conscious organization
Arrant greed. There should be an immediate SGM called and the entire board fired, along with its avaricious CEO. Disgusting abuse of good faith and good will.
The GLAAD Board knows better. Time to save face and the organization by cleaning house.
Outrageous! The GLAAD board and Ms. Ellis have betrayed their constituents by excessive compensation and overly costly travel expenditures. Shame. She should, of course, be adequately compensated and she should be comfortable while traveling on business — including flying 1st class, especially on long flights. However, 700K to over a million is, as I cried out, is outrageous.