Washington Blade - August 29, 2008
Michael Petrelis

Three months ago, when I began blogging on the Shniderman pay figures listed in the IRS 990 forms filed by Food & Friends, I didn't expect stories in the Washington Blade, the Washington Post, the Washington City Paper, and the Washington Business Journal - not to mention hundreds of related posts generated on the web. Publicizing Shniderman's pay package clearly hit a raw nerve for donors and supporters, many of whom don't support his high six-figure salary.

Members of the board of directors - led by chair Robert P. Hall III - attempted to justify the salary by citing letters from a consulting firm, Rocco Associates, hired by the board, to guide them in determining Shniderman's pay. Rocco Associates is hardly an independent source of information in this case, since it's a subcontractor for Food & Friends.

However, I wish to focus on important accountability and nonprofit transparency issues that have yet to be addressed.

Let's start with accountability matters and the Food & Friends board. Are there any clients - particularly people with AIDS - on the board? The group's web site lists an impressive array of high-powered legal and lobbying personages on the board, but not a single client or economically disadvantaged person.

It's probably standard practice in the circles of the board members that private sector leaders are paid in excess of $300,000, a world much different than that of people with AIDS struggling to stay alive on Social Security cash benefits below $10,000 annually.

NEXT, I CAN'T locate any dates or times when the board has held any town hall forums to solicit clients' and community input, nor can I find information on whether the board welcomes public comment and scrutiny at their meetings.

How does the board meet its responsibilities to the community to explain their stewardship of their multi-million dollar budget, compensation decisions, and to accept and use criticism for constructive changes that benefit their clients?

Regarding first-rate nonprofit transparency, Food & Friends should follow the good examples of the San Francisco AIDS Foundation and the Human Rights Campaign by making its IRS 990 tax reports available online for public inspection.

I would also like the board to divulge the amount of money spent in the past three years for the services of Rocco Associates and all other consultants hired to set Shniderman's salary. Advice from consultants hired by nonprofits doesn't come cheaply and we should know the amount shelled out for this purpose.

People living with AIDS must pay close attention to lots of figures. We must regularly monitor T-cells, viral loads, take certain numbers of HIV drugs, watch our weight and continually deal with numbers vital to our health.

That same vigilance must also apply to guarding the health of our service organizations - especially when they are endowed with plenty of small donations from individuals who believe the money that they give is reaching the people who need assistance.

BEFORE ANYONE WRITES a check to an HIV/AIDS or gay nonprofit, they should first see if the group posts its IRS 990 form on its web site. If it doesn't, then the potential donor should visit the GuideStar.org site, which is a great online repository of recent IRS 990 reports from all tax-exempt 501(c)(3) nonprofits.

The well-being of people with AIDS, and that of our community-based organizations, requires that many eyes pore over IRS 990 reports, to ensure community and government dollars are being properly allocated.

Finally, I want to examine Shniderman's salary from two new angles. First, I've added up his annual pay from 2003 through 2007, and he received a total of $1,284,557. This figure greatly aids in putting his compensation into a larger, multi-year context.

I firmly believe that is far too much compensation for one person to receive for running an AIDS food bank. Although it is extremely important, it's not rocket science to feed people with illnesses in our nation's capital.

Second, the 2006 IRS filing by God's Love We Deliver, the AIDS food delivery group in New York City, shows $8.8 million in revenue and that the executive director received $236,568 in compensation.

If the head of Food & Friends' counterpart in the incredibly expensive jurisdiction of Manhattan can live on less than a quarter million dollars annually, Shniderman ought to be able to survive at that salary level, too.

But if he simply can't make ends meet on much less much less than $357,447 in Washington, D.C., then clients and donors should insist that the board hire a top manager who puts people in need of services first, and personal profit last.

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Michael Petrelis is a San Francisco-based AIDS and gay rights activist and can be reached via his blog, mpetrelis.blogspot.com.

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