Letters to the Editor: High-paid Jews, Children’s library, crazy bar mitzvahs
None of the articles in your Dec. 17 issue on the salaries of Jewish leaders (“High-Paid Jew$”) so much as mentions, much less explains, the tax rules that govern compensation for leaders of tax-exempt organizations. These rules, known as intermediate sanctions because their violation leads to excise taxes rather than revocation of exemption, require that such compensation be reasonable. Under the applicable regulations, compensation is reasonable if it “would ordinarily be paid for like services by like enterprises under like circumstances.” The regulations permit boards or compensation committees setting these salaries to consider comparability data not only from tax-exempt organizations, but also from data from taxable organizations, if the organizations are similarly situated and the positions are functionally comparable.