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Child Organizations: The High Salaries of the Executives Who Run Them

1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic (by 8 people)   Your rating: 1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic

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Sponsoring a Child

Mother and Child

You have often seen the advertisements on television, with photos of childen in dire poverty, requesting you to sponsor a child. The truth is that there are many children around the world that need urgent help and there are many excellent organizations that provide much needed assistance.

But do you realize that the executives of these organizations earn, in many cases 5 or 10 times more than what you earn?

It seems contradictory that charity advertisements pleed for funds while charity executives enjoy large paychecks.

The president of the organization that I had been contributing to wrote a letter to sponsors announcing a 22% increase in monthly contributions saying "We have struggeled to keep up with rapidly rising costs without reducing the services and benefits we provide to the children under our care. Cutting back is something we just dont want to do." Cutting back his salary or his staff's salary is something else he didnt want to do. This letter was from an executive whose pay package is approximately $400,000 per year.

I wrote to the Child Sponsorship Organization that I was donating to and asked how they justified the high salaries. I received a detailed response, which included this:

"We feel that looking just at the salary of one individual or a handful of individuals is to miss the big picture and to get a mistaken impression. We could pay less and require less of our employees in terms of skills, experience and performance, but we feel the resulting inefficiencies would end up costing us more in the aggregate and benefiting the children less."

Two follow-up emails went unanswered.

I contacted several journalists to try to interest them in writing an expose, but I was told that there was little interest in the story. I was told that it was a well known fact that many charity CEOs are making huge bucks at the expense of the children. It simply was not news.

While I believe that many of these organizations fullfill a vital need and deserve your support, I STRONGLY suggest that you research the organization that you contribute to to make sure that its objectives match your requirements. I also ask your help to get journalists to start writing about this topic. To that end, please see the petition at the bottom of this page.

Chief Executive's Salaries 

CEO Salaries

Charitable Organizations are required to submit a Form 990 to the IRS and usually this form is on the charity's website. From the Form 990 you can find the CEO's salary. However, these forms are often 1-2 years old. Since CEOs usually receive hefty pay raises, this means some of the salaries you see below are probably considerably higher today.

World Vision
www.worldvision.org
Richard Stearns, President: $407,799

Children International
www.Children.org
Jim Cook CEO: $365,700

Save The Children
www.savethechildren.org
Charles MacCormack, President: $336,335

Christian's Children's Fund
www.ChristianChildrensFund.org
John Shultz President: $290,799

Compassion International
www.compassion.com
Wess Stafford, CEO: $205,939

Pearl S Buck
www.pearlsbuck.org
Janet L. Mintzer, President: $135,200

Christian Foundation for Children and Aging
www.cfcausa.org
Robert Hentzen, President: $105,378

Children, Incorporated
www.children-inc.org
Marian G. Cummins, President: $90,904
Poor Child

Sources and Resources that monitor charities 

http://www.give.org/
http://www.charitywatch.org/
http://www.charitynavigator.org/

Children Incorporated 

Children Incorporated, www.children-inc.org, is one charity I am considering supporting. Here are my reasons:

  • President Cummings salary is around $100,000. This appears to be one of the lowest salaries in the industry.
  • Charity Navigator gives them 3 (out of 4) stars.
  • Charity Watch gives them an A-
  • Give.org says "Children, Incorporated (CI) meets the Standards for Charity Accountability."


  • Children Incorporated does not seem to be denominational. At least, their site does not appear to be affilated with a particular religion or philosophy other than to help children in need.

    So far, what I see, I like. But at the moment, I am keeping an open mind.

    Resources 

    The Better Business Bureau Runs a website called Give, which allows you to see an overview of each charity.

    What kinds of questions should you ask before you donate your money? 

    Poor Child
  • What services will my child receive?

  • In some cases, the services are minimal. Nothing more than school books and an annual check up. Is that worth it?

  • Will my money go to directly supporting my child?

  • In some cases, your money goes to a 'general fund' which the charity uses as it sees fit. It does not go directly to your child. Personally, I prefer that my child receive services, but this is up to you.

  • What percentage of my money goes to my child?

  • Do not contribute unless at least 80% goes to the fund. No more than 20% should go to administrative costs.

  • How much money does the head of the chairity make?

  • Personally, I believe that the head should receive a reasonable salary, but should not be getting rich. What is reasonable? In my opinion $100,000 is a reasonable salary. I think it is disgusting that some charity heads feel that salaries of $300,000+ are justified. I would NOT recommend donating to any charity where the executives are making such salaries.

  • How can I communicate with my child?

  • Some charities allow you to send emails to your child, which are then translated locally. You will receive your response by regular snail mail. Others require that you send your letters by regular post.

  • Is this charity affilated with a particular religion?

  • Many charities began as missionary work for a particular religion. While there is nothing wrong with this, they may be using the charity to develop their religion abroad. Just be aware of the goal of the organization. Is it to help children? Or is it to convert new members? I want to support an organization whose primary goal is to help children, NOT to create new members for their religion. I want my charity to use my donations to feed and educate poor children, not to build churches.

  • Is the charity approved by watchdog organizations such as Give or Charity Watch?

  • Click the link for Give and see. However, amazing as it seems, many charity watchdogs like Give will approve a charity, even when the chief executive makes $0.5 million annually. Give's evaluation should be just one criteria. Do not base your final judgement on the opinion of the charity watchdogs.

    How To Change This? 

    Poor ChildThe ONLY way to change this is to bring this issue to the public attention. The only way that is going to happen is if not ONE but many journalists write about it, until donors understand what is happening and the situation changes.

    If donors start to realize how their money is being used, they will direct their donations to organizations which use their funds more responsibly. Charity Board Members will fire execs who insist upon earning megabucks and hire people who really want to help the children.

    Let journalist KNOW we are interested in this subject. Let them know it IS news. Let journalist know that we want them to investigate and publish this story until the situation has significantly improved.

    If you know a journalist, forward this page to them and ask them to write about it. If you do not know a journalist, sign the petition below.

    Petition: Sign Below. 

    Forward this Page To Your Friends And Ask Them To Sign.

    Please Write:
    1 Your Name
    2 Your City, State
    3 Contact Info (GeorgeSmith AT Hotmail.com)
    4 Your comments about salaries at Childrens Sponsorship Organizations

    Joan

    Children Foundation for Children and Aging just received the highest rating of four stars for the seventh counsecutive years by the Charity Navigator- and a A rating from the American Institute of Philanthropy. I've sponsored a child for 6 years and have been to Guatemala and met Bob Hentzen. He is the most compassionate, amazing and humble man I've ever met-a former missionary, but is married and has 6 children and 9 grandchildren. He has lived in Gutemala nearly all of his adult life. Last year his salary was 92,409 and with that he travels to the CFCA projects in the 25 countries where there are sponsored children. I've seen where he lives-- he lives among the people that he loves, and I've seen for myself how the Guatemalan people love him. By the way, in 1996 he walked 4,000 miles from the headquaters in Kansas to San Lucas Toliman in Guatemala in a pilgrimage of faith to show his love towards the poor and to call attention to their difficult situation.

    Posted May 18, 2008

    mulberry

    I'm not sure, afterall to attract good CEO's you have to compete with other types of organizations for the talent, that means a salary that is closer to that of others. My guess is few CEO's are worth their salary and particularly when their companies are failing...the good ones are worth it, the other 95% aren't. The market for CEO's overall is probably the problem.

    Posted April 20, 2008

    Shannon Darring, oak ridge 37830, TN,Hotfuse150@aim.com

    I dont know if I was more shcoked or more bumed out that people will manipulate those who choose to give. Though with many greedy people there are good, those kind of people give many more a reason to fight to change the name of mission work and charity.

    But anyone who wants to give should really reseach it before sending their money out

    Posted March 22, 2008

    Rachael

    WOW! That is ridiculous!!!! Teachers, who are in charge of children's lives, are paid crap compared to those CEO's!!! This world is soooo screwed up!! Rappers, sports players, actors & these CEO's make so much money! This makes me so angry!! I am going to be a teacher because I love children & I want to make a difference in their lives. It is just really unfortunate to read about someone who is supossed to be making a difference in childrens' lives , making $100,00-$400,00 a year!! These children are still in poverty & are still hungry! They live shitty lives while these SELFISH CEO's are sitting pretty!! PLEASE SOMEONE DO A STORY ABOUT THEM SO THINGS CAN CHANGE!!! I'm sure if more people knew that when they donated money it went into some CEO's pocket, they would further investigate the company before sending money!! I wish these CEO's could spend just a day living the life of these children & maybe they wouldn't be so fucking selfish & heartless!!!!!!!

    Posted March 12, 2008

    Carl

    I just watched a tv presentation of "Feed The Chilkdren". Any idea about how their CEOs are paid?

    The former President of Red Cross was paid half a million a year. That really destried public trust for charity organizations in US.

    Can a CEO grab a billion a year, and still claim non-profit?

    Posted March 09, 2008

     
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