A man by the name of Ward Connerly found that he could become a millionaire by becoming the chief executive of a non-profit. That's right. The top employee for an organization that purports to serve the public interest collects $1 million annually. For a working thirty hours a week. Great work if you can get it.
So what public interest activity nets such extraordinary compensation from a non-profit? Working to advance ballot initiatives to defeat affirmative action. That's right. The American Civil Rights Institute, a 501(c)(3) tax exempt organization, and the American Civil Rights Coalition, a 501(c)(4) tax exempt organization paid its president, Mr. Connerly, over $1 million.
You may not be surprised to learn that there are actually laws that prevent this abuse of the tax code, specifically Section 4958 which prohibits the payment of excessive compensation to employees of tax exempt organizations, requiring special taxation rates for any “excess benefit transaction.”
Of course, ballot initiatives on affirmative action are often used to increase voter turnout by promoting racial division. The tax code should not be abused to support this kind of activity.
Congressman Charlie Rangel, ranking member on the Ways and Means Committee, joined me in bringing this abuse to the attention of the Internal Revenue Service. It is unconscionable for this type of activity to take place at taxpayer expense. My hope is that the IRS will act swiftly to end this gross misuse of the tax code.
http://www.conyersblog.us/Conyers urges audit of affirmative action foe
http://www.detnews.com/apps/pbcs.dll/article?AID=/20060804/POLITICS/608040350/1022