Aug 1
Excessive Spending Exposed at GLAAD Media: 'Trap of Excess'
Emell Adolphus READ TIME: 2 MIN.
The chief executive of LGBTQ advocacy group GLAAD is facing excessive spending allegations in a New York Times report published Thursday.
Sarah Kate Ellis reportedly used funds from the nonprofit to fly first-class, rent a luxury house in Cape Cod and remodel her office, in addition to vacations abroad. And now sources tell NYT that it appears Ellis has fallen into the "trap of excess."
Upon reviewing GLAAD's expense reports and accompanying receipts from January 2022 through June 2023, including employment agreements, tax filings, audit reports, other financial documents and internal communications, NYT reported that the organization has an annual budget of around $30 million a year. Ellis' annual pay was anywhere from the high six to low seven figures.
The organization spent money on stays at exclusive lodges, hotels, car services, and dropped $20,000 to remodel Ellis' home office. Among other spends, the expenses fit a pattern of "potentially abusive use of charitable funds that would be surprising and insulting to a lot of their donors," lawyer Michael West, who advises charities, told NYT. "It appears she may have fallen into the trap of excess."
There's more. Based on the organization's spending and on what, it now will have to answer to the IRS for violating certain nonprofit spending rules.
"Many of Ms. Ellis's expenses also appeared to break GLAAD's own rules for travel and entertainment, which at the time stated that all employees must fly economy, prioritize public transportation and try to keep costs to a minimum," reported NYT.
However, GLAAD spokesman Richard Ferraro reportedly had a different take.
In a statement to NYT, he said Ellis' travel arrangements complied with the organization's updated policy travel policy, which allows for certain upgrades in depending on the circumstances.
Moreover, Ferraro defended the organization spending money on improvements to Ellis' home and summer housing because it enabled her to advance GLAAD's mission as the chief executive. He added that GLAAD consulted with its lawyers and accounts to be sure it remained "good financial stewards" and complied with the IRS.
Read the full story at NYT.
