New NYC Marathon Fees vs. NYRR CEO Salary

Yet Another New NYRR NYC Marathon Rule

Remember when running was fun!   Remember when you could sign up for a race the day of or at least the day before like at the Philadelphia Marathon a few years ago!  Remember when the requirement for the guaranteed entry to the NYC Marathon was to run 6 races?   Remember when it went to 9 races??  Now add yet another requirement.  You have to "volunteer" for another race during the year.  They are definitely making money at these events as evidenced by their multiple $300,000 range salaries and as shown in the Form 990 (http://dynamodata.fdncenter.org/990_pdf_archive/132/132949483/132949483_200403_990.pdf)  With 1/2 a million going to the sign maker and nearly $100,000 to the web designer, it's clear why a half marathon which is normally $15 to $20 sells at NYRR for over $70 and rising.   It's clear why the club night dinner is now $72 for members!
 
People wake up.  9 races * $15 =  $135 plus another day of "mandatory volunteering" (kinda an oxymoron) plus mandatory membership at $40 plus if you miss a race or miss the volunteer assignment you get the luxury of doing all over again.  Of course, if you lose in the lottery 3 years in a row (which is very likely since travellers spending big bucks and people with big money donation are never rejected) (you of course don't get your lottery entry fee back) but you do get the luxury of guaranteed entry in the fourth year.  Heaven forbid, you should get injured, that's okay, but no refund, and you get the privilege of running next year.  Of course, you have to pay again.
 
Basically it's like a one way highway, money travels in but very little comes back out.
 
That's because it's a monopoly.  NYRR favorite word is competition.  Well, we should show them what competition really means.  People should organize and create races that are more fun with better food, etc.  Central Park is nice but how many times can you run the same race?

non profit limitations

Here's the most recent New York Road Runner form 990. Their exempt purpose is "Health and fitness through runni" [sic]

Assuming they mean "Health and fitness through running"

What does giving 100,000's of dollars to elite california running clubs have to do with "Health and fitness through running"?
Don't these elites have enough health already?

Given the IRS rule:

• Nonprofit corporations must not distribute profits to members, officers or directors

What defines profits? between 3 members the salary adds up to 5% of total assets.

Here's a chart from 2005. According to this Mary is underpaid. We should point out that she needs a raise at the next meeting. And of course that Ann Wells-Crandall Hinegard [sic] would also need a raise.

source: http://www.charitynavigator.org/index.cfm/bay/content.view/catid/68/cpid/304.htm

Do you know these people? What do they do? I think they are all underpaid.

Source: 2005 Form 990

Ann Wells-Crandall Hinegard VP for Sales
259,421.

Patrick McNamara VP of Finance
165,252.

Peter Ciccia VP of Events
136,500.

Susan Cuttler VP of Creative
131,162.

Robert L. Laufer VP of Legal
127,526.


I think the problem lies in the exempt purpose. It should read:

"Promote health by supporting running and walking in the New York City Area"

--------------------------------------------------------------------------------------------------------------------------------------------
References:

2005 New York Road Runners primary exempt purpose:
"Health and fitness through runni" [sic]

Exempt purpose other years they actually list:
"Health and Fitness through Running and Walking"

Source: http://dynamodata.fdncenter.org/990_pdf_archive/132/132949483/132949483_200403_990.pdf
--------------------------------------------------------------------------------------------------------------------------------------------

All organizations must describe their exempt purpose achievements in a clear and concise manner. State the number of clients served, publications issued, etc. Discuss achievements that are not measurable. (Section 501(c)(3) and (4) organizations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others.)

Source: US Government Form 990
--------------------------------------------------------------------------------------------------------------------------------------------

Caution Not-for-Profit Corporations must have a board of directors or a board of trustees with a minimum of three adults and must meet at least once a year. All not-for-profit corporations must keep good corporate records. These records help to preserve directors' limited personal liability and protect your organization's tax-exempt status. Limits on Nonprofit Activities The following are some rules that a not-for-profit corporation must follow in order to retain their tax-exempt status: Nonprofit corporations cannot contribute money to political campaigns Nonprofit corporations can engage in only limited lobbying activities Nonprofit corporations must not distribute profits to members, officers or directors Nonprofit corporations must pay taxes on income from "unrelated activities" Nonprofit corporations cannot make substantial profits from unrelated activities When a nonprofit corporation dissolves, its assets must be distributed to another tax-exempt group

source: http://www.nyc.gov/html/sbs/nycbiz/html/starting/notforprofit.shtml
--------------------------------------------------------------------------------------------------------------------------------------------