Recent reporting on the Baltimore Children and Youth Fund (BCYF), a nonprofit that receives tens of millions in guaranteed Baltimore City taxpayer dollars, highlights ongoing concerns about transparency, accountability, and governance at the publicly funded charity. Spotlight on Maryland’s review of salary data and financial practices shows that BCYF’s oversight over executive compensation may depart from nonprofit best practices.
According to Spotlight on Maryland, BCYF’s salary data, obtained by the outlet via a public records request, reflects that the nonprofit’s 23 employees are paid well above the median household income in Baltimore, which is roughly $60,000. The average salary at BCYF is around $90,000, with six employees earning at least $100,000, according to Spotlight on Maryland, which also reported that its president, Alysia Lee, received reported compensation of $219,000. Total salaries accounted for approximately $2.67 million, or about 16 percent of the $16 million in taxpayer funds allocated to the organization in its most recent fiscal year.
It is important to note that higher-than-average salaries in the nonprofit sector are not inherently problematic and, in some cases, are both justified and necessary. Nonprofits compete directly with the for-profit sector for talented professionals with specialized education, skills, and experience, particularly in areas such as finance, legal compliance, program management, and executive oversight. What matters is not whether compensation appears high in nominal dollars, but whether it is reasonable in light of the responsibilities of the position, the complexity of the organization, and the qualifications required to perform the job competently and effectively. When pay is set through a transparent process that includes independent board review, appropriate comparability data, and clear documentation, it can support strong performance and organizational stability rather than undermine public trust.
Concerns extend beyond compensation levels to how executive pay is determined. According to BCYF’s most recent IRS filing, the organization did not indicate that it used an independent review, comparability data, or contemporaneous documentation when setting executive compensation. These steps are widely recognized as nonprofit best practices.
CharityWatch CEO and Executive Director, Laurie Styron, when interviewed by Spotlight on Maryland, noted that the absence of these safeguards should concern the public. “When following best practices, we expect to see yes checked to that box every time,” she said. “When it’s not, the public should be wary of whether this person is being paid appropriately or not. Having an independent review and having an official process in place for board approval, including independent data collection to set that compensation of the leader is really important for following best practices.”
Styron emphasized that nonprofits relying heavily on taxpayer funding carry heightened responsibilities. “When you’re a nonprofit that relies primarily on taxpayer dollars, those taxpayers are sort of willingly or unwillingly supporting you,” Styron told Spotlight on Maryland. “You really have a duty to your community to make sure, as a board of directors, that you’re following all of the best practices.”
In response to the concerns raised by Spotlight on Maryland, representatives of the Baltimore Children and Youth Fund defended the organization’s compensation practices by stating that executive pay is set through an internal performance review process and subject to annual caps approved by the board. BCYF officials said salary increases were tied to expanded responsibilities and the scale of the organization’s work, and they emphasized that compensation decisions were made in accordance with internal policies rather than arbitrarily.
The organization also pushed back on suggestions of lax oversight, asserting that its board provides appropriate supervision and that spending decisions are aligned with its mission to support youth-focused programs across the city. While acknowledging scrutiny and forthcoming reviews, BCYF framed the reporting as lacking full context about its operational needs and governance processes, maintaining that it remains committed to transparency and compliance.
In response to growing concerns, the Baltimore City Council is considering legislation aimed at increasing transparency around BCYF’s finances and grantmaking. A forthcoming report from the city’s Inspector General is also expected to examine oversight practices in greater detail. Meanwhile, BCYF’s spending decisions, including out-of-state travel billed as professional development, continue to raise questions about stewardship of public funds.
Will you help CharityWatch continue our important work?
As the only independent charity watchdog organization in the United States, CharityWatch relies on your support to fund our in-depth research and analysis in order to bring you the unbiased charity ratings and other information you rely on to help you make more informed giving decisions. We are not directly or indirectly funded by nonprofit industry interests.
We hope you will consider making a donation today so that we can continue to speak openly and critically and call out wrongdoing when we see it without concern for special interests cutting our funding. CharityWatch is a small organization and your donations are noticed, needed, and greatly appreciated. Thank you for giving wisely!
