Head of major LGBTQ+ group GLAAD accused of using donations to fund lavish lifestyle

The outlet reviewed expense reports, receipts, tax filings, audit reports, and other documents from GLAAD, the Gay and Lesbian Alliance Against Defamation, dated between January 2022 and June 2023, which showcased the luxurious spending by chief executive Sarah Kate Ellis, 52, with the spending sparking concerns that the organization may have violated IRS rules.

When Ellis renewed her contract in 2022, in addition to salary increases were a variety of other items. Ellis was given up to $20,000 to renovate her home office, with the executive spending at least $18,000 of this to renovate the top floor of her Long Island house. Things like pillows, paint, a chandelier, and a sectional sofa were expensed.

GLAAD spokesman Richard Ferraro said the spending was necessary as Ellis hosted virtual events and made television appearances.

Ellis also sought reimbursement for over 30 first-class flights in the time frame that the Times reviewed. On one trip to a conference in California, GLAAD spent over $13,000 on a first-class ticket, a room at the Waldorf, and car services. On a Washington, DC trip, GLAAD spent $3,900 on car services. A trip to the Davos summit in Switzerland cost GLAAD $15,000 in car services alone, and also paid for a day of skiing. At the Davos trip, Ellis and colleagues stayed at the Tivoli Lodge, which cost nearly half a million dollars to rent for the week.

Ferraro said that the Davos trip had been funded by a donation from the Ariadne Getty Foundation, and that the lodge was also used as a venue for receptions and other events. He added that Ellis reimbursed the company for the ski trip, and that GLAAD had paid for that "due to an administrative oversight."

The contract also incuded a $25,000 annual allowance for Ellis to rent a home in Cape Cod. Ferraro said the summers in Provincetown were important so she could meet with donors and activists and attend events in the area.

Ellis joined GLAAD in 2014, when the organization was in danger of being unable to make payroll and its expenses outpacing donations. Under Ellis, the company had quintupled its revenue to nearly $19 million by 2022, and in that same year, Ellis’ contract was up for renegotiation.

A new employment agreement was negotiated, increasing her base salary by 5 percent, to $441,000. She would also receive 5 percent increases each year through the end of her contract, which ends in 2027.

In addition to the base pay, Ellis was offered additional signing bonuses, bonuses tied to fundraising, discretionary annual bonuses, and a "farewell appreciation bonus" that could be redeemed in 2027. Altogether, the new contract placed Ellis on track to receive between $700,000 and $1.3 million per year. GLAAD spokesman Richard Ferraro said that it was "practically impossible" to reach that upper end of pay.

Legal experts have raised concerns over Ellis’ pay, noting that under federal and state rules, a non-profit’s board of directors must ensure that compensation is comparable to that of other executives at similar organizations. If the IRS deems the pay too much, the organization and its leaders can face financial penalties or even lose its tax-exempt status.

If Ellis were to receive over $1 million per year, that would place the salary in a similar range to what executives at large non-profits like the American Red Cross, Planned Parenthood, and the American Civil Liberties Union pay, though those organizations are many times larger than GLAAD. Ferraro said that the board set Ellis’ pay after looking at compensation at 10 other organizations, and that while GLAAD isn’t as large as other groups like the ACLU, GLAAD’s "visibility, impact and influence is similar."

GLAAD’s chief financial officer at the time, Emily Plauche, had expressed concerns to Liz Jenkins, the chairwoman of GLAAD’s board of directors, about what she viewed as excessive spending that conflicted with GLAAD’s policies, as well as this spending not being properly disclosed to the IRS and the public, people with knowledge of the matter told the Times. The board hired a law firm to investigate and the organization’s travel policy was changed in November. Plauche left GLAAD around the same time, and signed a financial settlement barring her from speaking publicly about the organization.

Ferraro said that "GLAAD parted ways with Ms. Plauché due to her poor performance." Plauche’s lawyer, Bruce Menken, said that this was false and his client had left by mutual agreement.