State Limits on Non-Profit Executive Compensation Not Airtight
Several recent posts from around the Web have pointed up potential flaws in states’ efforts to limit nonprofit compensation. In New York, which recently imposed a salary cap tied to the amount of funding an organization receives from the state, methods of calculation and the potential for waivers built into the rules may limit their effectiveness, as pointed out in the article “The Holes in the Salary Ceiling” at http://www.cityandstateny.com/nonprofit/ . In Illinois, the state is moving against a structure where an executive is employed by a for-profit company that in turn is engaged by the nonprofit to provide management services, thus potentially shielding the executive’s compensation from public scrutiny
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