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The Form 990 serves as a charity’s disclosure of its finances. The forms include information useful to potential donors, along with a description of the group’s activities and budget, and the salaries of top employees.
The ZOA’s most recent properly filed Form 990 is from 2007. That year’s filing is the latest available online for the group.
At the Forward’s request, the ZOA provided its 990s for 2009, 2010 and 2011. These documents are not publicly available and have yet to be filed with the IRS.
Klein’s salary climbed dramatically during the tax years for which the records are absent from public view. He received one raise to a base pay of $385,000 in 2009, and then another to a base pay of $435,050 in 2011.
Klein’s salary for 2011 makes him one of the best-compensated Jewish professionals in the United States. Of the 75 not-for-profit executives studied in the Forward’s latest annual Jewish communal salary survey, only 16 outearned Klein. All but one of those 16 ran far bigger organizations than the ZOA.
Of the 16 Jewish communal executives in the Forward’s survey earning $435,000 or greater, most had budgets in the tens of millions of dollars and staffs of hundreds.
The ZOA had a staff of 31 and expenses of $3 million in 2011.
Over the same period that Klein’s salary has grown, the group’s fundraising has fallen. The ZOA received $2.5 million in gifts, grants and contributions in 2011, down from $3.7 million in 2007. The group’s total 2011 revenue was $3.1 million when investment income and other revenue streams are added. That is down from $4.5 million in total revenue in 2007.
“Mort doesn’t decide how much money he’s compensated,” Drimer told the Forward. According to Drimer, Klein’s compensation is determined years in advance by a schedule drawn up by a compensation consultant and approved by a board committee and the group’s entire board.
Drimer also noted that Klein worked full time without pay for the first six years of the 19 he has now served as head of the ZOA.
The Forward reported earlier in September that the board’s vice chairman, Steven Goldberg, said that the board exercised little oversight over the organization. Goldberg told the Forward that he had not seen an organizational budget since he joined the ZOA board in 2008. In response, Drimer said that the board has a finance committee that approves the budget.
Drimer said that the group is imminently filing its application to reinstate its tax-exempt status.
A spokeswoman for the IRS would not say how long it takes the agency to grant new tax exemptions to groups like the ZOA, whose exemptions have been lost for failure to file Form 990, but a former head of the division of the IRS that deals with tax-exempt groups said that those groups can sometimes get back their exemptions quickly.
“Assuming everything’s in order, my guess is it might take a number of weeks, maybe a month or two,” said Marcus Owens, director of the IRS exempt organizations division from 1990 to 2000 and now a lawyer in private practice at the firm Caplin & Drysdale. “The IRS is trying to expedite the reinstatement process.”
If the IRS has questions about a group’s application, Owens noted, the reinstatement process could take far longer.
Contact Josh Nathan-Kazis at firstname.lastname@example.org or follow him on Twitter @joshnathankazis