Sarah Kate Ellis, the President of GLAAD, is under the spotlight for extravagant expenses that have raised eyebrows among legal experts and nonprofit advocates.
Recent investigations by The New York Times have uncovered that Ellis, who leads the Gay & Lesbian Alliance Against Defamation (GLAAD), has been using charity funds for some high-end luxuries.
The expenses reviewed include first-class flights, stays in luxury hotels, and even home renovations.
Among the notable expenditures was a $18,000 remodel of her home office, complete with a chandelier.
When traveling for work, Ellis frequently opted for first-class flights and luxurious accommodations, including stays at the Waldorf Astoria.
She also used pricey car services and even expensed a summer rental on Cape Cod and a lavish stay at a seven-bedroom chalet in the Swiss Alps during the World Economic Forum in January 2023.
Ellis’s trip to Zurich, which included nearly $500,000 for a week-long stay at the Tivoli Lodge and a day of skiing, has been particularly controversial. The trip, paid for by GLAAD, also included $15,000 for car services.
According to reports, Ellis’s travel expenses included over 30 first-class flights within an 18-month period, with GLAAD spending over $13,000 for her airfare and accommodations for a conference in California alone.
Ellis’s compensation package is also drawing criticism. In 2022, her contract was renegotiated to include a base salary of $441,000, with a 5% annual increase and additional bonuses.
This new agreement also included a $150,000 signing bonus and up to $300,000 in performance-based bonuses. Along with her salary, Ellis receives various perks, including airline tickets for her family and a $25,000 annual allowance for renting a home in Provincetown.
Before this new contract began, Ellis had billed GLAAD $15,000 for a three-week stay in Provincetown, which she categorized as housing for a board meeting.
She later charged $14,000 for a down payment on another rental for the following summer and used up the $20,000 allowance for home office renovations.
Policy Violations and Employee Concerns
The lavish spending raises questions about compliance with GLAAD’s own policies, which typically limit hotel costs to $350 a night.
Legal experts suggest that these expenses might not align with IRS rules and nonprofit standards.
Nonprofit organizations are expected to ensure executive compensation is reasonable and supports the charity’s mission.
GLAAD’s CFO, Emily Plauché, had previously raised concerns about what she considered excessive spending, leading to an internal investigation.
The findings led to policy adjustments allowing some upgrades but did not resolve all issues.
The disagreement over spending also led to Plauché leaving GLAAD under circumstances she and the organization have differing accounts of.
Reactions and Organizational Stance
Despite the controversy, GLAAD’s spokesperson Richard Ferraro defended the spending as compliant with their policies.
He claimed that the Swiss trip was funded by a donation from the Ariadne Getty Foundation and that the skiing expenses were reimbursed by Ellis.
GLAAD’s board chair, Liz Jenkins, has expressed unwavering support for Ellis, emphasizing the importance of GLAAD’s mission and the integrity of its leadership.
Ellis herself has stated that she takes her role as a financial steward very seriously and will continue to update procedures in line with the organization’s growth and mission to support the LGBTQ community.
Looking Ahead
As GLAAD continues its work advocating for LGBTQ rights, the organization faces scrutiny over its financial practices.
The challenge will be balancing high compensation packages and luxurious spending with maintaining transparency and trust within the nonprofit sector.
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