Leaders of the volunteer National Association of Realtors received perks and compensation that lawyers say could violate U.S. tax laws, according to a Times investigation published Monday.
Whether you’re refining your business model, mastering new technology, or finding a strategy to take advantage of the next market boom, Inman Connect New York prepares you to take a bold step. The next chapter is about to begin. Please join us. Join us and thousands of other real estate leaders from January 22-24, 2025.
Volunteer leaders at the National Association of Realtors are paid hefty stipends and other benefits that could help them avoid tax laws for U.S. nonprofits, according to a bombshell investigation published Monday by The New York Times. There is.
This benefit did not apply only to members of the leadership team. In addition to former CEO Bob Goldberg’s $2.6 million annual salary, NAR will also cover up to $75,000 in membership fees and dues at a country club near his home in Maryland, as well as private tours in Chicago and Washington. He has agreed to cover the club’s costs and may continue to receive compensation. He is a paid consultant, the report said.
Participate in the November INMAN Intel Index Survey
Members of the executive team received corporate credit cards and used them for perks such as expensive dinners, golf outings, and tickets to see Broadway plays for themselves and their families at resorts and events.
The investigation also included insights from lawyers who questioned whether the spending was legal.
Jeff Tenenbaum, a nonprofit lawyer in Washington, D.C., told the New York Times: “It’s highly unusual, even virtually unheard of, for volunteer leaders and executives to receive compensation at that level.” spoke. “Many of us who practice association antitrust law are always asking, ‘How can we get away with this?'”
NAR Chairman Kevin Sears
Another lawyer told the Times that nonprofits risk losing their tax exemptions if their members violate tax laws by making unreasonable expenses or taking personal favors.
The report marks a year in the making for NAR to improve its standing among members who openly question the value provided by the organization and its state and local counterparts that pay annual dues. It was announced in the midst of spending a lot of time.
As part of our investigation, reporters spoke with 18 former executives and former and current NAR employees. She also obtained a recording of CEO Nikia Wright’s private conversation from October and a confidential employment agreement with Mr. Goldberg in 2017.
Mantil Williams, a spokesperson for NAR, told the Times that leadership roles “require significant time commitment, personal sacrifice, and significant travel,” and that leaders only work exclusively in real estate. He pointed out that he works as a gatekeeper and has given up his professional time to take up the position.
In response to Inman’s questions about whether it has implemented recent changes or disputes the report’s findings, NAR declined to comment.
This report relies in part on publicly available tax returns from nonprofit trade organizations. Inman previously reported that members of the NAR coaching team are paid seven-figure salaries.
Using the most recent tax returns available, former NAR Chairman Charles Opler received $294,798 annually in 2021 and incoming Chairman Leslie Ruda Smith received $251,788, Inman reported. Previously reported.
Former NAR CEO Dale Stinton received $250,000 in 2021 as a consultant to the organization. Asked at the time whether NAR would continue to pay Mr. Stinton as a consultant and whether Mr. Goldberg would have a similar contract when he retires, NAR declined to comment, citing employment status. The contract is confidential.
bob goldberg
The Times noted that Goldberg is listed on LinkedIn as an executive consultant for NAR, but it is unclear what role he plays, how much he is paid, and what other information he receives from the organization. It is not clear whether they are receiving benefits.
Leaders can also take their spouses on business trips, which would require first-class airfare, the Times reported.
Former officials told the Times they rarely filed expense reports and instead used NAR’s corporate credit cards. Once, after leaders bought up tickets to the blockbuster play “Hamilton,” the organization’s bookkeepers began reining in spending.
The report also outlines other benefits given to Mr. Goldberg, including a $1,500 car allowance and a $1,500 car allowance to cover the cost of utilities and insurance at his residence near NAR headquarters in Chicago. In addition to receiving $2,250 per month, she also hired a pet sitter for her two dogs during her stay. I traveled.
Email Taylor Anderson
