Clear the air on charity's spending

Bonuses for Wall Street executives whose companies received billions in bailout money struck a raw nerve with many Americans over the past year.

So does a flap about how a national charity uses tax dollars and compensates its CEO pale by comparison?

Yes. Still, we think that four U.S. senators, including Iowa's Chuck Grassley, are asking legitimate questions about the national Boys & Girls Clubs of America. Let's be sure the answers have sufficient context.

According to Friday news reports, senators question why Roxanne Spillett, president/CEO of the Boys & Girls Clubs organization, received nearly $1 million in compensation in 2008 - base salary of $360,774, bonus of $150,000, “other” pay worth $83,152 and $385,000 in deferred pay for retirement. They also question why the national office spent $4.3 million on travel, $1.6 million on conferences, conventions and meetings, and $544,000 on lobbying fees.

Some of that context. Spillett's compensation is not uncommon among large, complex national charities. Last year, CEO pay averaged $462,000, according to Charity Navigator, a Web site that evaluates charities.

And much of the travel and conference/meeting expense is for staff to train and assist local club directors, John Tursi, executive director of the Cedar Rapids Boys & Girls Club, told us.

In his 11 years here, the club has paid about $35,000 in total dues but received $180,000 back in grants from the national office, he said. “That compares very well to other large national charities.”

As for the CEO's pay, “I don't know about the deferred money, but the salary and incentives are within the range for national leaders these days; it's what you have to pay to get somebody good,” he said.

OK. But some clarification is warranted before proposed legislation in Congress advances any farther.

Some background.

Congress, recognizing the value of the club's work with disadvantaged youth, in 1996 authorized $20 million per year - seed money to establish at least 1,000 new local clubs with a requirement that the organization would operate without additional federal money. Under Spillett's leadership, the number of clubs has increased sharply, from 1,850 in 1996 when she became president to 4,360 last year.

Now, a Senate bill, S. 2924, would expand the seed program to a steady stream of funding - $425 million over five years.

Satisfying the senators' questions is important. If the national organization's spending practices aren't justified or appropriate, the ripple effect could hurt local clubs who don't pay big salaries to their staff and depend on grants from the national office as well as local donations.

Most important, we don't want the biggest losers to be boys and girls who benefit from the club's programs.