The host committee for the 2016 Democratic National Convention’s use of nearly a $1 million out of a $4 million surplus for staff bonuses raises concerns, Professor Robert Field said in a Philadelphia Inquirer article published on May 19.
“That sounds problematic,” said Field, who is an expert on legal issues in the nonprofit sector. “Generally to get federal tax exemption, you have to provide in bylaws and articles of incorporation … that any leftover funds will go to another charity.”
The Inquirer notes that the host committee did give $1.2 million to charities and nonprofits.
Former Gov. Ed Rendell, who chaired the host committee, said the payments were deferred compensation for staff.
Field said, however, that there should be documentation showing that the board of directors approved any bonus that’s part of a compensation package.
The article noted that, in the wake of reporting of the bonuses, the state’s auditor general is conducting an audit of a $10 million grant the state provided to the host committee.