‘Nonprofit company makes owners wealthy’
November 2nd, 2009While CA cuts funds for disabled, couple gets rich providing services
By Alan Zarembo in the Los Angeles Times:
A California couple who run a nonprofit for people with developmental disabilities have earned more than $7 million in salary and deferred compensation over the past five years, spurring questions about the limits of laws governing nonprofit organizations.
Edward and Marcia Dawson’s company, Social Vocational Services, provides job training, life skills instruction and group housing, and is sustained by taxpayer dollars.
The Dawsons made their millions while navigating the murky boundaries of nonprofit law. By definition, nonprofit companies exist for the public good. Federal law says that executive pay must be “reasonable” — a vague standard that regulators and watchdogs say essentially allows nonprofits to set their own limits.
While the state is slashing the budget for the developmentally disabled, it places no ceiling on how much executives like the Dawsons can earn. In addition to their pay, they collect more than $700,000 a year for renting properties to SVS, including a San Francisco condominium for their own use.
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November 8th, 2009 at 3:09 pm
Yup, we spend millions to keep up the status quo, while the people that they are supposed to serve are dying for some help!!!!!!!!
November 2nd, 2009 at 8:24 pm
The Dawsons are millionaires yet SVS pays low wages, have high staff turnover, provide poor behavioral programming for those individuals who have challenging behavior and provide minimal staff training. Where is the outrage???