Cort
Phoenix Rising Founder
- Messages
- 7,390
I'm not sure where you're getting the 265k on research. Can you point that out?
EDIT: Nevermind, I see you meant 2007 not 2008! And salary expense was $924,226, not $650,000.
Salary expense is an expense just like any other. In for-profit companies, they're part of the income statement under SG&A. You can't just remove them when considering proper budget allocation to research. I don't begrudge management taking high salaries, but there has to be a measure of performance that their salaries are based on. What standard are those who donate to CAA going to hold them accountable to minimize the risk of management's complacency with donations? I think grant money distributed is a good measure, with total research expense being in second place.
I believe salary expense included contracted work with the CDC. I agree about keeping the CAA accountable with regards to ensuring that a large percentage of expenses go to research grants and research expenses and we shall see how that goes in the future.
Not for profits do have to account for their money's in different ways on tax forms -I'm finding that out as I start up PR. One thing I did find out that surprised me is that the IRS doesn't just ask organizations to account for their salaries - they ask them to hire an outside firm to do a survey of non-profits of the same general size in the region and determine what their salaries and that is what it appears the CAA did.
I remember this because I specifically pointed out in my application that I will easily be making less than an entry level employee at McDonald's and I stated that until I making alot more than that there's no reason for PR to hire someone to do a survey!