Amid national attention to excesses at nonprofits, the chairman of the Senate Finance Committee has rebuked the board of the J. Paul Getty Trust, saying it has failed to curb Chief Executive Barry Munitz's lavish pay, perks and travel.
"Charities shouldn't be funding their executives' gold-plated lifestyles," Sen. Charles E. Grassley (R-Iowa) said this week in a statement to The Times. His committee is considering the first major overhaul of laws governing nonprofit organizations in 30 years.
"I'm concerned that the Getty board has been spending more time watching old episodes of 'Lifestyles of the Rich and Famous' than doing its job of protecting Getty's assets for charitable purposes," he said.
Grassley's comments came in response to a June 10 Times story that related how Munitz, who makes more than $1.2 million and is among the nation's highest-paid leaders of nonprofits, had traveled the world first class at Getty expense, often with his wife. Records showed that even when the trust was cutting staff, Munitz used Getty resources on pet projects and favors for friends.
"The board's failure is especially troubling, because the Getty is a private foundation that doesn't rely on outside donations and therefore doesn't need to be responsive to potential donors," Grassley said.
The spotlight has fallen on the Getty as nonprofits have been trying to demonstrate that they are capable of self-regulation. Like other tax-exempt organizations, it is required by law to dedicate its resources to the public good, not private benefit.
On Wednesday, a panel representing the nation's 1.3 million charitable organizations presented a set of proposed reforms to Grassley's committee. Among the ideas were increased penalties for excessive compensation and tighter restrictions on first class and spousal travel.
"The issue of extensive compensation and lavish travel were a very deep concern to the panel," said Diana Aviv, executive director of the Panel on the Nonprofit Sector, a group formed to advise Grassley's committee. "Most people don't want to allow lavish lifestyles to be paid for on the backs of charities."
The Senate Finance Committee, which has proposed even tighter restrictions, is expected to introduce legislation in July.
Asked to respond to Grassley's statement, none of the Getty's staff or 12 trustees, including Munitz, would comment Wednesday.
But in the past, Getty board Chairman John Biggs has defended the trust's oversight.
