New York Charity Execs Used Taxpayer Funds for Bonuses

Image: Shutterstock

Image: Shutterstock

The Northern Manhattan Perinatal Partnership is in hot water with the Department of Health and the Department of Education, according to DNAInfo New York. The organization, which is dedicated to helping women and young children, especially in Harlem, is being accused of squandering money on bonuses for executives, while failing to uphold a $4.3 million contract signed with the city.

Between 2014 and 2015, chief Mario Drummonds, who previously covered up accusations of sexual misconduct against one of his employees, took $71,300 in bonuses from the organization. That this as done while they were simultaneously not holding up their end of a contract with the city to provide a “network of community health care workers” at projects in Harlem is disturbing enough, but they’ve failed that contract so much that the city has taken that three year contract away from them, after only a year. On top of that, paying bonuses with money granted from taxpayer funds is illegal, and they failed to report the bonuses to the DOH or DOE, which was required in both cases.

Drummonds and others garnered about $200,000 in bonuses, all while making pretty hefty wages as it was. Drummonds more than doubled his income in that time, with a normal salary of $65,548 a year. Some of the bonuses he took were probably more than the yearly income of some of the families he was supposed to be helping.

This isn’t how nonprofits are supposed to function; in fact it’s pretty heavily implied in the name, “nonprofit,” that people don’t get to give themselves huge bonuses. But it’s not entirely surprising, with how often charities and nonprofits are run by ex-Wall Street executives. Companies in American routinely pay their CEOs and other executives absurdly large salaries while their employees scrape together a living or they fail to live up to contracts. Why, apparently, should nonprofits be any different?

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