CHARITY BOSSES FLEECING DONORS – There a millions of people around the world that give donations to charities each and every day. The level of giving to worthy causes not only makes us feel better about ourselves but also towards society as a whole.
It is a good thing that people give to those most in need but there is, according to some, a darker side to the major charities; in that those running them would really rather you wasn’t aware of, the subject being executive salaries.
Whilst charities are largely non-profit making organisations they do, as with a commercial organization, have overheads and operational expenses to cover and this always includes paying staff.
The issue here is that more and more of the major charities are awarding salaries to chief executives that some feel are excessive; that is salaries are running into six figures leaving donors wondering why they are simply handing over their hard earned cash to support the fat cats running these charities.
In a recent report it was uncovered that some 30 chief executives of well known and respected charities were receiving salaries in excess of £100,000.
It’s not just the well-intentioned donors that provide money for most the major charities. In fact the Government regularly provides money from the taxpayers’ purse; in other words whether you want to give or not the decision is taken out of your hands.
Some groups are now calling on the charities for more transparency as to where they obtain their money and how it is spent, however some, including Sir Stephen Bubb, head of the Charity Commission, has hit out saying these revelations over chief executive pay only brings charities in to disrepute and that it is a disgraceful distraction as to the work these people perform for the community as a whole.
I personally both agree and disagree with Sir Stephen Bubb; these people generally do a fine job and their expertise is certainly needed in order to guide a charity; however I disagree that openly discussing the issue of chief executive pay would cause disrepute as all charities should and must remain completely transparent to the public.
It would appear that Sir Stephen Bubb is suggesting that chief executive salaries be kept a secret and that any attempt to bring them to public light is a bad thing; surely this act would only bring about the disrepute he talks of – the issue therefore is why does chief executive pay have to be kept a secret; shouldn’t the truth be told?
No one would doubt that charities need to attract highly professional people to run a complex organization; it is after all their leadership that makes the charity work effectively and I doubt anyone would actually complain about the salaries; this issue is not really about the size of the salary but the fact that some charities have attempted to hide the information.
In real terms charity chief executives generally receive remuneration far less than they would receive if working for a commercial organization. The average chief executive salary of the major charities, both in the UK and internationally, according to Sir Stephen Bubb, is approximately £58,000. This is certainly far less than most chief executives receive when working for a commercial operation.
There is simply no denying that we need high caliber personnel running the charities and that they are of vital importance in helping the poor and of course bring to the public attention the plight of other people and atrocities leveled against them.
I for one think that charities do a fine job and whilst I give personally I also don’t have a problem with certain charities being funded by the taxes I pay. As for the chief executive; having an organization run without proper expertise would never allow that organization to function adequately and therefore it is only sensible to employ the right people and their salaries generally reflect their level of expertise.
Do you think Charity bosses get paid far too much or are their salaries justified? Please leave your comments below.