In a surprising twist, the CEO of GLAAD, Sarah Kate Ellis, has come under scrutiny for her extravagant use of charity funds.
Known for her role in advocating for LGBTQ rights, Ellis is now facing legal and financial questions over how she has been spending the organization’s money.
A recent investigation by The New York Times has shed light on Ellis’s lavish expenses, which include first-class flights, stays at luxury hotels, and even home renovations.
Between January 2022 and June 2023, Ellis’s spending was anything but modest. She reportedly spent $18,000 to renovate her home office, complete with a chandelier.
During business trips, Ellis often traveled first-class and stayed at high-end hotels like the Waldorf Astoria, all while using pricey car services.
Her travels extended beyond the U.S. as well. Ellis and her team stayed at a seven-bedroom chalet in the Swiss Alps, a trip that cost nearly $500,000 for a week.
This included not only luxurious accommodations but also expenses like skiing, which she reportedly put on the charity’s tab.
Overall, GLAAD spent over $13,000 just for her first-class flights, a room at the Waldorf, and car services for a California conference.
Ellis’s compensation package is also noteworthy.
Her salary is reported to be in the high six or low seven figures, with a base salary of $441,000 and a five percent annual increase through 2027.
Her contract also includes a $150,000 signing bonus, performance-related bonuses up to $300,000, and a $225,000 farewell bonus due in 2027.
Additionally, Ellis is provided with a $25,000 annual allowance for renting a home in Provincetown, and her family can join her on trips four times a year.
Before her new contract took effect in October 2022, Ellis billed GLAAD around $15,000 for a three-week stay at a Provincetown cottage, which she labeled as housing for a board meeting, even though the rental extended well beyond the meeting.
She also charged $14,000 for a down payment on another Provincetown rental.
Questionable Use of Funds
The use of GLAAD’s funds has raised eyebrows among experts and critics. The organization’s own policies recommend keeping hotel costs under $350 per night, yet Ellis’s stays often exceeded this.
Legal experts argue that such spending, particularly on extravagant travel and home improvements, might be inappropriate for a nonprofit with only about 60 employees.
They suggest that these expenses resemble those typical of for-profit companies rather than nonprofits.
The IRS and state regulators could view such high executive pay and lavish perks as excessive, potentially leading to penalties or loss of tax-exempt status.
A lawyer advising charities mentioned that this pattern of spending could be seen as a “potentially abusive use of charitable funds.”
Internal Disputes and Reactions
Tensions within GLAAD have surfaced as well.
Last year, CFO Emily Plauché raised concerns about what she saw as excessive spending, which she believed was not properly disclosed to the IRS or the public.
This led to an internal investigation and a dispute with board members.
Plauché eventually left GLAAD under a settlement that prohibited her from discussing the matter publicly.
Despite these issues, GLAAD’s spokesperson, Richard Ferraro, defended the expenditures, claiming they were in line with the organization’s policies.
He also asserted that the Switzerland trip was funded by a donation from the Ariadne Getty Foundation and that Ellis reimbursed the organization for the skiing expenses made in error.
Ellis and GLAAD’s Stance
Sarah Kate Ellis has responded to the controversy by emphasizing her commitment to GLAAD’s mission and financial stewardship.
She stated that the organization’s work is crucial, given the increasing attacks on the LGBTQ community, and that they are continually updating procedures to align with their growth.
GLAAD board chair Liz Jenkins also expressed strong support for Ellis, highlighting the importance of GLAAD’s mission and the board’s confidence in Ellis’s leadership.
As GLAAD continues its advocacy efforts, the spotlight on Ellis’s spending will likely persist, raising ongoing questions about the balance between executive compensation and nonprofit accountability.
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