Sarah Kate Ellis, CEO of GLAAD, a leading LGBTQ advocacy nonprofit, is facing scrutiny over lavish spending and potential policy violations. Despite GLAAD's $30 million budget, Ellis's expenses on luxury travel, hotels, and personal home office renovations are raising concerns. These expenditures, reviewed by The New York Times, included first-class flights, stays at high-end hotels, and significant home improvements, funded by GLAAD.
On a rainy Sunday morning in January 2023, Sarah Kate Ellis, the chief executive of GLAAD, arrived at Zurich airport to be chauffeured to the Swiss Alps for a stay at the luxurious Tivoli Lodge. This trip, part of her journey to the World Economic Forum in Davos, was funded by GLAAD, a nonprofit LGBTQ advocacy group. Internal documents and interviews revealed that GLAAD paid for Ms. Ellis's trip, including a day of skiing, showcasing a pattern of lavish spending that potentially violated both the organization’s policies and IRS rules.
The New York Times reviewed numerous GLAAD expense reports, highlighting Ms. Ellis’s first-class flights, luxury hotel stays, and significant expenses for personal benefits such as a Cape Cod summer rental and a $20,000 home office renovation. Her compensation package, potentially reaching up to seven figures, is significantly higher than that of leaders at similarly sized nonprofits. Legal experts raised concerns about the appropriateness of such perks and luxurious business travel for a nonprofit organization, which is expected to ensure reasonable executive pay aligned with its mission and donor intent.
GLAAD’s board responded to these concerns by hiring an outside law firm to investigate and subsequently revising travel policies. Despite these changes, GLAAD spokesperson Richard Ferraro defended Ms. Ellis's expenses and travel arrangements, stating that they complied with updated policies and were essential for advancing GLAAD’s mission. The board, led by chairwoman Liz Jenkins, continued to support Ms. Ellis, emphasizing her role in leading the organization during challenging times for the LGBTQ community. Ferraro also clarified that the trip to Davos was funded through a donation and that GLAAD used the lodge for official events.
Under Ms. Ellis's leadership, GLAAD has significantly increased its revenue and influence, with major donations from media and tech companies, philanthropists, and city councils. However, internal concerns were raised about whether the organization was misusing funds meant for advocacy purposes. The departure of CFO Emily Plauché, who warned about excessive spending, further underscored internal tensions. Plauché's concerns led to an investigation and subsequent changes in travel policies, but she left the organization amid disputes over the transparency of financial disclosures.
GLAAD maintains that it followed legal and financial advice, but the scrutiny over its financial practices and executive compensation remains a contentious issue. Critics argue that Ms. Ellis’s expenses and the organization’s spending patterns reflect a potential misuse of charitable funds, raising questions about the balance between rewarding top talent and adhering to nonprofit standards. While GLAAD continues to champion LGBTQ rights and expand its reach, the debate over its financial stewardship highlights the challenges nonprofits face in maintaining donor trust and organizational integrity.
