We got a news release this morning that The Independence Center had hired a new CEO.
We put in a phone call to see how much the new CEO, Patricia Yeager, would be paid. We got voice mail, so we left a message.
Trying to get a feel for how much this position might pay, we consulted the organization's IRS 990s available on-line for 2007 to 2009.
Are you ready for this? The previous CEO Vicki Skoog was paid nearly $2.6 million over a three-year period. Here's her pay for each of those years:
2007: $183,057 in salary; $724,479 in other compensation. Total: $907,536.
2008: $147,821 in salary; $300,809 in other compensation. Total: $448,630.
2009: $1,177,577 in salary; $42,595 in other compensation. Total: $1,220,172.
This organization, which provides services including home health care to those with physical and mental disabilities, reported revenue of $4,969,056 in 2007; $5,441,491 in 2008, and $5,981,140 in 2009. The 2010 report isn't yet available online.
So, doing the math, Skoog's compensation comprised 18 percent of the agency's revenue in 2007, 8 percent in 2008 and a whopping 20 percent in 2009.
Here's our question: Does this type of pay constitute inurement under the IRS rules for nonprofits?
The IRS code says that nonprofit tax exemption is given to an organization with the understanding that no part of the net income inures to the benefit of any private shareholder or individual.
"Any unjust enrichment, whether out of gross or net earnings, may constitute inurement," the IRS code says.
We don't know if this is "unjust enrichment," but the word enrichment seems to apply.
The agency built a new $2.3 million building in 2008, according to this report.
Seems this outfit might have a lot of good advice for many other local nonprofits struggling through the down economy and having a hard time providing services. One nonprofit day-care provider recently shut down due to lack of money.
Anyway, here's the announcement on the hiring of the new CEO. If we hear back about her pay, we'll let you know.
Colorado Springs, CO. - The Board of Directors of The Independence Center (The IC) have selected Patricia Yeager as the new Chief Executive Officer (CEO). The Independence Center provides holistic services to persons with disabilities who wish to live independently in the community through its Independent Living program and Home Health services in El Paso, Teller, Kiowa, Kit Carson, Park, Lincoln, Cheyenne and Elbert counties.
Yeager served as the executive director of the California Foundation for Independent Living Centers in Sacramento. She has been active in the independent living movement for 30 years, promoting access to higher education in Pittsburgh and Denver, shaping public policies, as well as developing and implementing services at Independent Living Centers in Denver and San Diego. She has provided organizational consulting to Independent Living Centers and Councils around the country. Yeager earned her M.S. in Rehabilitation from West Virginia University, and a PhD in Human Rehabilitation from the University of Northern Colorado.
She began her role as CEO on October 3, and has been serving as Interim CEO since April.
“We are excited to have Patricia on board with us,” Trudy Dawson, Board Chair at The IC said. “Patricia brings years of experience and expertise to the role and will help lead the Center into its next chapter.”
The Independence Center is hosting an open house on October 27th, 2011, from 4-6 pm at its offices at 729 S. Tejon Street.