Comment from Schunke, Neil
Neil SchunkeOtherIndividual
Summary: The commenter suggests that tax-exempt organizations should have a cap on employee salaries, such as $250,000, to ensure they serve the public good rather than private interests. They argue that these organizations should also be more proactive in seeking pro bono work to justify their tax-free status.
By their very nature, tax exempt organizations are meant for the public good. They are not meant for private good (huge salaries for their “employees“). I would propose that in order to maintain tax-free status, the salary and compensation should be limited to a fixed amount, say $250 K. Alternately,we could use the financial compensation of a US senator as a guideline. While there may be some issues that require tweaking for the hiring of lawyers, it would seem that a financially exempt organization should be requesting and gaining pro bono work. If they are not a valuable asset to our nation, lawyers, and others will not be moved to do work for them. Given that actions in law require public dollars for the judicial system, this seems like an excellent area to limit compensation without taxation.