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Letter: Bloated salaries undermine mission of many institutions

Bloated salaries undermine mission of many institutions

One positive change in the new tax law concerns nonprofit institutions that paid executives more than $1 million per year. Excessive salaries undermine the true cause for hospitals, colleges and charities.

The Wall Street Journal received the most recent available data from 2014 and found that 2,700 employees at United States nonprofits were paid more than $1 million that year.

Bloated university salaries are constantly rising. College football coaches’ salaries are ridiculous. Seventy-eight currently make more than $1 million and Alabama’s Nick Saban earned $11 million. Hospital salaries are excessive. Yet hospitals, colleges and other nonprofits keep asking for donations.

The new law will impose a 21 percent excise tax on those paying over $1 million. That should make the various boards think twice before approving huge salaries in the nonprofit area. Excessive salaries are taking away the money available for the organization to accomplish its purpose.

John Orlowski


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