Executives at Publicly-Funded Nonprofits Make Big Bucks Serving the Needy

mission_city.jpgWhat can be more lucrative--running a relatively small nonprofit with government funds or running the government?

The answer? Running the nonprofit.

At least six publicly supported Los Angeles County health or human service nonprofits reported on their public tax returns that they paid their chief executives more than $300,000 per year.

That is $50,000 more than Los Angeles pays its superintendent of schools, Ramon Cortines, who the Los Angeles Times touts as one of the nation's most experienced educators. Cortines, who oversees a $13 billion operation that serves nearly 700,000 youngsters, gets paid $250,000 per year.

Nik Gupta, an accountant, makes twice that running a $7 million a year, private, nonprofit, San Fernando Valley-based public health clinic, Mission City Community Network, which provides medical services to the indigent and uninsured.

Report: Self-Dealing by Executives and Board Members of the Nonprofit Tarzana Treatment Center

An investigation by the Center for Public Accountability identifies $22 million in extra costs that have been or will be incurred, apparently to benefit executives and other insiders at the non-profit Tarzana Treatment Center, which receives 85% of its $45-million annual budget from government sources.

The Center released a report that details a pattern of self-dealing on real estate transactions and excessive executive compensation by the Tarzana Treatment Center management team.

Download the Center for Public Accountability report on Tarzana Treatment Center (pdf)

Selected Appendices (pdf)

Appendix I - Cap Rate Analysis

Appendix II - Property Detail

Appendix III - Colliers Cap Rate Analysis

Appendix IV - Lease Agreement

Appendix V - Bonds

Appendix VI - Tarzana 1998 Bond Documents

Appendix VII - Lease v. Property Ownership

Appendix VIII - Financial Profile

Appendix XI - Chronicle of Philanthropy Compensation Survey

Appendix XII - Tarzana 990 FY98-08

Appendix XIII - LA County Largest Nonprofits

Appendix XIV - Email Between SEIU 721 & Tarzana Treatment Center

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