Albany, NY - Andrew Cuomo's Order Baffles Nonprofits
Albany, NY - The cap on executive pay at state-funded nonprofits issued last month by Gov. Andrew Cuomo—prompted by a scandal at one organization—isn’t the only blow to service providers in his executive order. Nonprofit groups fear the mandate will saddle them with administrative costs and tarnish service providers.
“The governor’s order was rash and political,” said one nonprofit executive. “It had no input whatsoever from the outside world.”
Mr. Cuomo launched a task force investigating nonprofit pay last summer, but acted on the issue without the usual hearings, studies and recommendations. Even though his compensation task force is now holding hearings, critics say unresolved details of the executive order could remain.
The order directs state agencies to write regulations limiting the amount of state money used to pay nonprofit executives to $199,000, yet there is confusion among nonprofits as to whether CEOs could be paid from other revenue streams. (They can.) Many organizations also don’t know if the limit applies just to salaries or to total compensation.
Additionally, the executive order requires service providers to produce annual compliance reports. “What we don’t need is more administrative burdens,” an insider said. Nonprofits already submit comprehensive reports to their boards, the attorney general and the Internal Revenue Service.
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