Pay for nonprofit executives scrutinized by city controller

SAN FRANCISCO (Map, News) - A number of top executives at nonprofits receiving significant funding from The City are earning more than the average of their Bay Area counterparts, according to a new city controller report obtained by The Examiner.

The report comes as members of the Board of Supervisors deliberate over Mayor Gavin Newsom’s proposed budget for next fiscal year, which closes a projected $338 million deficit through job eliminations and service reductions. Additionally, the mayor asked labor unions to make cuts to help balance the budget.

Nonprofits — which provide a variety of services and benefits in exchange for their tax-exempt status — will receive nearly $600 million from The City this fiscal year.

The Controller’s Office report focused on the organizations that receive at least half of their revenue from The City, or at least $2 million, and whose executive director earned more than $100,000. “The concern that the members of the board have expressed is that for some nonprofit agencies who are in the business of providing services to the very poorest people in San Francisco are making salaries that are well in excess of professional positions that are paid in this city,” Deputy City Controller Monique Zmuda said.

The report lists 27 salaries for the current fiscal year that exceed $100,000, including seven above $200,000 and four earning more than $170,000, but less than $200,000.

According to the controller’s report, the average salary paid to an executive director in the nine-county Bay Area depends on the budget of a nonprofit and ranges between $99,662 and $166,463.

While most of the executive director salaries for the nonprofits looked at by the Controller’s Office are on par with the Bay Area average for nonprofit officials, “in some instances, salaries paid exceed the average by a significant amount,” according to a June 17 memo sent to Supervisor Jake McGoldrick, who requested the report and chairs the budget committee. McGoldrick was not reachable for comment Thursday.

Earlier this month, The Examiner reported that nearly 60 of the more than 100 nonprofits slated to receive at least $1 million in city funding — in local, state or federal dollars — this year have paid top executives more than $100,000 per year in salary, and 12 have paid high-ranking employees more than $200,000, according to their 2005-06 tax filings.

jsabatini@sfexaminer.com