Sarah Kate Ellis, CEO of the nonprofit LGBTQ advocacy group GLAAD, is facing serious scrutiny over her lavish spending of nonprofit funds on first-class flights, luxury accommodations, and extensive home renovations.
Historical Background and Mission
GLAAD, originally founded in 1985 as the Gay and Lesbian Alliance Against Defamation, aims to combat defamatory and sensationalist media coverage of LGBTQ issues.
A Changing Mission
Over the years, GLAAD has expanded its mission to promote fair, accurate, and inclusive representation in the media, becoming a prominent advocate for LGBTQ equality.
Media and Donor Relations
GLAAD now acts as a watchdog for media representation of LGBTQ issues and maintains strong relationships with major donors, including media companies and philanthropists.
Ellis’s Leadership and Impact
Sarah Kate Ellis joined GLAAD in 2014 when the organization’s assets were dwindling, and the organization was in danger of being unable to make payroll.
Quintupling Revenue
Under Ellis’ leadership, GLAAD successfully quintupled the organization’s revenue to nearly $19 million, thanks to her efforts to elevate the organization’s profile, engage with major donors, and create new fundraising programs.
Personal Background and Advocacy
Originally a Staten Island native with a background in magazine publishing, Ellis became known as an advocate for LGBTQ equality through her public and personal endeavors.
The Lavish Spending Allegations
Now Ellis finds herself in the financial hot seat after a New York Times article has revealed her lavish spending habits on the GLAAD’s company dime.
Raising Concerns
The article reveals first-class flights, stays at the Waldorf Astoria, and a $15,000 Cape Cod rental, raising concerns about misuse of charitable funds.
Home Office Renovations
Ellis also spent nearly $20,000 on her home office renovation, which included an excessive chandelier and potentially violates IRS rules on taxable income.
Suitable For Television
In defense of this spending, a GLAAD spokesperson, Richard Ferraro, said, “The spending ensured that Ms. Ellis’s home office was suitable for her television appearances and hosting virtual events.”
Raising Millions
“Being in Provincetown enabled Ms. Ellis to raise millions of dollars during a traditionally slow time of year for fund-raising,” Ferraro explained regarding the summer rental expenses.
Internal Policy Breaches
Many of Ellis’s expenses even violated GLAAD’s own travel and entertainment policies, which mandated economy flights and minimal spending costs.
CFO’s Concerns
GLAAD’s CFO, Emily Plauché, initially raised the alarms about excessive spending and inadequate IRS disclosures, leading to her departure and a subsequent legal settlement.
Poor Performance
In response, Ferraro stated, “GLAAD parted ways with Ms. Plauché due to her poor performance,” though Plauché’s lawyer disputed this, claiming a mutual agreement.
Organizational Defense and Changes
Since Plauché was let go, the GLAAD board has continued to support Ellis and even implemented new travel policies, allowing business class under certain conditions.
Standing Firm
“The board and I stand firmly behind Sarah Kate Ellis, with respect and appreciation for how she and her team are leading the movement,” said Liz Jenkins, chairwoman of GLAAD’s board.
Public and Internal Criticism
Despite the board’s commitment to Ellis, some employees and experts criticized Ellis’s expenditures, suggesting they reflected for-profit executive practices rather than expected nonprofit norms.
A Pay Package For Elis
“Ms. Ellis’s pay and perks look ‘much more like a pay package of a for-profit executive and less like that of a person directing a charity,'” said Brian Mittendorf, a professor specializing in nonprofit accounting, to the New York Times.
Elevating GLAAD
Despite the controversy, Ellis’s leadership has significantly elevated GLAAD’s profile, impact, and resources in order to better advocate for LGBTQ rights and media representation.
Keeping Pace
“I take my role as GLAAD’s financial steward incredibly seriously, and we’ll continue updating our procedures to keep pace with the organization’s rapid growth,” Ellis emphasized.
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Featured Image Credit: Shutterstock / Jacob Lund.
