ZOA's Mort Klein Gets 38% Pay Hike

Leader's Salary Increased Despite Losing Tax Status

Rubbing Elbows: Zionist Organization of America President Mort Klein got healthy pay increases even as the group failed to file required tax documents.
naomi zeveloff
Rubbing Elbows: Zionist Organization of America President Mort Klein got healthy pay increases even as the group failed to file required tax documents.

By Josh Nathan-Kazis

Published September 28, 2012, issue of October 05, 2012.
  • Print
  • Share Share
  • Single Page

(page 2 of 2)

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 nathankazis@forward.com or follow him on Twitter @joshnathankazis


The Jewish Daily Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. In the interest of maintaining a civil forum, The Jewish Daily Forwardrequires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and The Jewish Daily Forward reserves the right to remove comments for any reason.





Find us on Facebook!
  • The rose petals have settled, and Andi has made her (Jewish?) choice. We look back on the #Bachelorette finale:
  • "Despite the great pain and sadness surrounding a captured soldier, this should not shape the face of this particular conflict – not in making concessions and not in negotiations, not in sobering assessments of this operation’s achievements or the need to either retreat or move forward." Do you agree?
  • Why genocide is always wrong, period. And the fact that some are talking about it shows just how much damage the war in Gaza has already done.
  • Construction workers found a 75-year-old deli sign behind a closing Harlem bodega earlier this month. Should it be preserved?
  • "The painful irony in Israel’s current dilemma is that it has been here before." Read J.J. Goldberg's latest analysis of the conflict:
  • Law professor Dan Markel waited a shocking 19 minutes for an ambulance as he lay dying after being ambushed in his driveway. Read the stunning 911 transcript as neighbor pleaded for help.
  • Happy birthday to the Boy Who Lived! July 31 marks the day that Harry Potter — and his creator, J.K. Rowling — first entered the world. Harry is a loyal Gryffindorian, a matchless wizard, a native Parseltongue speaker, and…a Jew?
  • "Orwell would side with Israel for building a flourishing democracy, rather than Hamas, which imposed a floundering dictatorship. He would applaud the IDF, which warns civilians before bombing them in a justified war, not Hamas terrorists who cower behind their own civilians, target neighboring civilians, and planned to swarm civilian settlements on the Jewish New Year." Read Gil Troy's response to Daniel May's opinion piece:
  • "My dear Penelope, when you accuse Israel of committing 'genocide,' do you actually know what you are talking about?"
  • What's for #Shabbat dinner? Try Molly Yeh's coconut quinoa with dates and nuts. Recipe here:
  • Can animals suffer from PTSD?
  • Is anti-Zionism the new anti-Semitism?
  • "I thought I was the only Jew on a Harley Davidson, but I was wrong." — Gil Paul, member of the Hillel's Angels. http://jd.fo/g4cjH
  • “This is a dangerous region, even for people who don’t live there and say, merely express the mildest of concern about the humanitarian tragedy of civilians who have nothing to do with the warring factions, only to catch a rash of *** (bleeped) from everyone who went to your bar mitzvah! Statute of limitations! Look, a $50 savings bond does not buy you a lifetime of criticism.”
  • from-cache

Would you like to receive updates about new stories?




















We will not share your e-mail address or other personal information.

Already subscribed? Manage your subscription.