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NYT Calls Out GLAAD CEO's Spending on Flights, Chandelier

LGBTQ advocacy group claims no IRS rules were broken
By Arden Dier,  Newser Staff
Posted Aug 2, 2024 1:34 PM CDT
NYT Calls Out GLAAD CEO's Spending on Flights, Chandelier
GLAAD CEO Sarah Kate Ellis speaks at "A Night of Pride with GLAAD" on Wednesday, Feb. 8, 2023, in Phoenix.   (Gregory Payan/AP Images for NFL)

Funds donated to LGBTQ advocacy group GLAAD paid for a $22,000 private flight and $25,000 vacation rental for its president and CEO, the New York Times reports, noting the spending may have violated IRS rules and the nonprofit's own. The outlet found Sarah Kate Ellis expensed first-class flights, luxury hotels, and private car services while earning $700,000 to $1.3 million per year. Ellis also received $20,000 to remodel her home office, "which was outfitted with a chandelier," and a $25,000 annual allowance to rent a summer home in Cape Cod, the Times reports. The spending seemingly violated GLAAD policies stating employees should be "cost conscious," fly economy, and prioritize public transport.

"It appears [Ellis] may have fallen into the trap of excess," Michael West, a lawyer who advises charities at the New York Council of Nonprofits, tells the Times, noting the pattern of spending shows "a potentially abusive use of charitable funds that would be surprising and insulting to a lot of [GLAAD] donors." GLAAD did not report the money spent on the home office renovation as income on Ellis' tax forms, meaning she likely did not pay taxes on the $20,000, potentially violating IRS rules, per the Times. Former GLAAD CFO Emily Plauché had warned Liz Jenkins, the chair of GLAAD's board of directors, about excessive spending, which she did not believe was properly reported to the IRS, the Times adds.

An outside law firm investigated and recommended GLAAD update its policies to allow executives to fly business class under special circumstances, according to a GLAAD rep, who claims Ellis' travel was in line with the updated rules as well as IRS rules. He adds the vacation rental enabled Ellis to meet with donors and activists, advancing the group's mission, while the renovation made her home office suitable for TV appearances and virtual events. Jenkins, meanwhile, says the board has "full confidence" that Ellis and her team work with integrity and a "commitment to irrefutably strong governance and business practices." GLAAD has a budget of roughly $30 million per year. (More GLAAD stories.)

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