GLAAD CEO Faces Investigation Over High Spending

Sarah Kate Ellis, President and CEO of GLAAD, is under scrutiny following a New York Times investigation into her spending habits. The report, spearheaded by journalist Emily Steel, claimed Ellis’s expenses may be more extravagant than what is typical for a nonprofit leader. Extravagant Expenditures Among the findings, Ellis reportedly spent almost $500,000 renting a […] The post GLAAD CEO Faces Investigation Over High Spending appeared first on Gayety.

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Aug 6, 2024 - 20:00

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GLAAD CEO Faces Investigation Over High Spending

Sarah Kate Ellis, President and CEO of GLAAD, is under scrutiny following a New York Times investigation into her spending habits. The report, spearheaded by journalist Emily Steel, claimed Ellis’s expenses may be more extravagant than what is typical for a nonprofit leader.

Extravagant Expenditures

Among the findings, Ellis reportedly spent almost $500,000 renting a seven-bedroom chalet in Switzerland for a week to attend the World Economic Forum in Davos. Additionally, GLAAD covered a $60,000 bill for Ellis and a colleague to attend France’s Cannes Lions advertising summit. Other notable expenses included $18,000 for home renovations, including a new chandelier, and more than 30 first-class flights. All of this was recorded over 18 months.

Questionable Financial Practices

The investigation raised concerns about whether these expenses align with nonprofit standards and IRS regulations. Michael West, a lawyer specializing in nonprofit organizations, commented, “It appears she may have fallen into the trap of excess.”

High Salary Under Scrutiny

Ellis’s salary, which can range from $700,000 to $1.3 million annually, has also come under fire. However, Ferraro clarified, “In practice, it is impossible for Ms. Ellis to receive $1 million in a year, and she has not received anything near that on this contract.” This salary is attributed to Ellis’s role in revitalizing GLAAD, significantly boosting its revenue to $19 million by 2022.

About GLAAD

GLAAD, the Gay & Lesbian Alliance Against Defamation, is a leading nonprofit organization that works to promote LGBTQ acceptance and ensure fair representation in the media. Founded in 1985, GLAAD is committed to changing the narrative about LGBTQ people and issues through advocacy, education, and impactful campaigns. The organization plays a crucial role in holding media accountable and amplifying the voices of the LGBTQ community.

Responding to the Costs

Rich Ferraro, a spokesperson for GLAAD, defended Ellis’s expenditures. He explained that many of these costs were essential for GLAAD’s mission, such as fostering relationships with donors and attending critical events. Ferraro emphasized that a donation from the Ariadne Getty Foundation, a longtime supporter of GLAAD funded the Davos trip.

Ellis herself addressed the controversy, stating, “I take my role as GLAAD’s financial steward incredibly seriously, and we’ll continue updating our procedures to keep pace with the organization’s rapid growth. Our work has never been more urgent because the LGBTQ community is under increasing attack.”

GLAAD Board’s Support

Despite the controversy, GLAAD’s board stands firmly behind Ellis. Liz Jenkins, the board’s chairwoman, expressed unwavering support, stating, “The board and I stand firmly behind Sarah Kate Ellis, with respect and appreciation for how she and her team are leading the movement at a time when our community is under attack. We have full confidence that they’re doing so with integrity and that they share the board’s commitment to irrefutably strong governance and business practices.”

The board had previously commissioned the law firm Sheppard Mullin to investigate the spending concerns, resulting in recommendations for updating travel policies. Following the investigation, GLAAD’s CFO, Emily Plauché, who initially flagged the concerns, left the organization.