Should National Night Out's Founder Spread The Joy?

SaveArdmoreCoalition's picture

Mmmm, mmmm, mmmm....wow...who knew? Imagine if the officers of SAC and the founders of First Friday took such a salary? (Full disclosure: SAC and FFML folks make and take NOTHING! It's pure volunteerism) This sure makes people wonder....should we go to National Night Out Tuesday August 7th? Read the article and decide:

Nonprofit is lucrative for founder
By Andrew Maykuth
Inquirer Staff Writer

When he launched the first National Night Out in 1984, Matt A. Peskin envisioned an event in which people across America would turn on their lights and sit on their porches in a symbolic gesture to fight crime.

The Wynnewood man's idea quickly evolved into a night of coordinated neighborhood block parties. Peskin says about 11,000 communities will celebrate National Night Out on Aug. 7. Millions of Americans will participate.

Little did Peskin imagine that his concept would grow and endure, thanks partly to federal subsidies of $2.7 million in the last 10 years.

And nobody imagined the event would reward Peskin so richly.

His organization, the National Association of Town Watch, devoted about a third of its budget in 2005 to pay Peskin a $255,000 salary and $42,000 in benefits, according to the group's most recent tax filings.

According to the NonProfit Times, a business publication covering nonprofit management, the average salary for a charity with less than $1 million in annual revenue - the size of Peskin's organization - is about $70,000. Peskin's pay is in line with that of chief executives of large nonprofits with annual revenue greater than $50 million, according to the trade journal.

Peskin is paid more than any federal official other than the president, who makes $400,000. He is paid more than the governor of any state - Gov. Rendell makes about $164,000 this year. Law enforcement officials don't make what he makes. The Philadelphia police commissioner makes $143,000, and the Pennsylvania State Police commissioner is paid $125,000. They manage departments with thousands of employees....One reason the association can afford to pay Peskin so handsomely is that American taxpayers subsidize about a third of his organization's $900,000 budget. The Justice Department last year gave Peskin's association a $296,000 crime-prevention grant.

While the grants for National Night Out are a fraction of the Bureau of Justice Assistance's annual $1.5 billion budget, the money continues to flow even as violent crime is increasing and local law enforcement officials complain about reductions in federal assistance.

Some studies indicate that neighborhood-watch programs are not effective at reducing crime because they do not fundamentally change the behavior of criminals.

Town watch has "no effect on violent crime," said Lawrence W. Sherman, director of the Jerry Lee Center of Criminology at the University of Pennsylvania. "And events like National Night Out - one night of marching and protesting - there's zero evidence that works."

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dmuth's picture

This whole thing is just unbelievable. Where I come from, if you volunteer to help out with something, it is for the purpose of giving back to your community and helping to make it a better place for everyone.

And it seems he *is* sharing the wealth, with his family and friends:

The National Association of Town Watch is governed by a five-man board of directors that includes Peskin and his brother, Hal, whom the organization pays $28,000 a year for part-time assistance. The other board members are Peskin family friends with connections to Lower Merion.

Anyway, I have to question whether drawing that kind of salary constitutes an abuse of how non-profits operate. Anyone know if the IRS has a procedure for handling complaints about such non-profits?

SaveArdmoreCoalition's picture

It's not just us questioning this stuff....

Karen Heller | Giving until it hurts - to look at who is receivingBy Karen Heller
Inquirer Columnist

Last night was National Night Out, a night to promote neighborhood safety. I spent the night in, pondering why Matt A. Peskin makes $255,000 in salary and $42,000 in benefits so people can have annual block parties to feel better about safety.
"National Night Out has proven to be an effective, inexpensive and enjoyable program," the Web site states.

Scratch the inexpensive part.

This is another charity where the biggest charitable recipient seems to be the organization's leader. This stretches the concept of doing well for yourself by helping others. My favorite regional recipient of his board's own largesse is WHYY's Bill Marrazzo.

As president and chief executive officer of the public radio and television station, Marrazzo makes a very for-profit salary, $430,786 and an additional $56,250 in benefits during fiscal year 2006.

For those of you playing at home, the president of the United States makes $400,000.

Why donors, and the board, aren't outraged by this remains a mystery. The key to charitable giving is to be smart about it, to make sure money is going to essential programs, not officers' paychecks.

....Sen. Arlen Specter, who helped deliver $2.7 million in federal funds to Peskin's organization, voiced his concern to The Inquirer. Specter, who works tirelessly, even while battling Hodgkin's disease and receiving chemotherapy, earns $165,200, about a third less than Peskin.

....Apparently devoid of humility or remorse, Peskin said new caps on salaries of organizations receiving $250,000 or more in federal subsidies would have no effect on his income. "The implication is that the taxpayers are paying my salary, and that's not the case," he told The Inquirer.

Looks like Peskin is watching his bank account as much as he is the town.

There's a solution to such obscene salaries and perks, highly profitable payments for heads of nonprofits: Stop giving.

...Consult Charity Navigator to see how the nonprofit is rated or guidestar.org to check tax returns for expenditures, including top staffers' salaries

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