“work to enhance the dignity and quality of life of individuals and families by strengthening communities, eliminating barriers to opportunity, and helping people in need reach their full potential through learning and the power of work.”
This is funny because organizations like the Salvation Army are under attack for their anti-gay beliefs and practices, Goodwill Industries has been under fire for their anti-dignity practices. It makes you wonder, is worse. Personally I believe they are both just as bad and have decided to stop supporting both.
It is estimated that nonprofits should strive for 90% of their donations and funding going to their cause. For a not-for-profit in 2012 they had a total revenue of 4.89 billion according to their website. They are under fire because NBC reviews showed that while Goodwill executives are making up to six figures some of their disabled workers are only making 22, 38, and 41 cents per hour. Many ask with the federal minimum wage set at $7.25 an hour (with some states minimum wage higher) how do they get away with it. In 2011 while workers were making 22 centers per hour the main CEO for Goodwill Industries made $729,000 in salary and other compensations.
Looking into it Goodwill has many CEO’s that handle different areas and different parts of the country or countries. Goodwill is proudly saying that 82% of the money made went into direct services for the disabled. This includes hourly pay of cents per hour, transportation, and other job related expenses to get the disabled population working. Because they get services Goodwill believes its pay is more than fair. After all without Goodwill they would not be working.
Wrong Goodwill! Some people are calling it a minimum wage loophole but Goodwill is insisting it is a necessary part of helping the communities they serve. In 1938 during the great depression, there was a wage law put into place called the Special Wage Certificate Program. This was aimed at getting companies to hire more disabled workers. Organizations approved for this program can pay the disabled any amount based on their ability with no minimum.
In a press release Goodwill defended this practice and said that every 33 seconds during a business day someone is hired through the help of Goodwill. See their full press release here
People probably would not have such a big issue with this if Goodwill was not paying so much money to their executives. Just cutting out a few levels of management would allow them to provide thousands of more jobs based on the money they pay per hour and the amount they pay their executives.
In a Huffington Post report they, found some of the executives for different areas were making
$440,197, $316,685, $393,001. Five CEOs in Californian for Goodwill make a total of $1,776,652 in pay and compensation. Goodwill does not need five CEOs in one state.
If they cut out the California CEO’s alone and paid the disabled workers the highest amount of 41 cents per hour who worked 40 hours they could put 108,332 more people to work. Imagine making only $16.40 per week. I am sure that they probably collect disability benefits or services through the government but we all work hard for our money. In current times $16.40 is about three gallons of gas or a little over.
What is your take? Should this 1938 law be reviewed? Should nonprofit CEO’s have compensation caps? With the banking crisis they looked closely at executive pay and bonuses so why is so different for a not-for-profit.
After all the goal of a nonprofit is to help people.