Nothstein is the Executive Director of The Velodrome. According to its most recent tax return on file,which is for calendar year 2015, he was paid a $134,000 salary based on total revenue of $808,885. This is 17% of total revenue. Comparing this to the salaries and total revenue at other LV nonprofits, it appears that Nothstein is being paid too much.
Another problem is that Lehigh County happens to own the property upon which the Velodrime was built. It is leased to the nonprofit. Nothsetein recused himself from acceptance of a donation to the Velodrome in February, but a few months later, he at least appears to have been among those who voted to hire financial advisers for funding a capital plan that included improvements to his nonprofit.
Coming Up: How about LV Colleges claiming tax exempt status? What do they pay top officials?
49 comments:
Love your series Bernie. I disagree on the salaries. Other than a few of the Human Service non-profits the others are disgusting in what they pay their executives. The big thing that ticks me off is they are the ones that are always begging at local government meetings for money.
To quote a famous TV show, "shame...shame....
I have been to the Velodrome. Tickets are $6 for some events. If 17% of all revenue is going to Marty, that means that $1 from each ticket goes straight into his pocket. Call it the Nothstein surcharge!
I still do not understand why people are so focused on the salaries of executives in the nonprofit world. The comment above calls them "disgusting". What is disgusting about someone with experience who leads an organization effectively being compensated at a level similar to that of the business sector? These are multi million dollar organizations, mostly leveraging human capital (which means multiple HR headaches) to accomplish important missions on a shoestring. $150,000 - $200,000 a year does not buy you yachts or a mansion in Saucon Valley. And yet when you read the comments from the earlier post, the same people decrying these salaries are positively giddy about forking over tax cuts to the uber rich. Just doesn't make sense. Bernie, I also think it is a mistake to tie executive compensation to the issue of tax exemption. That status comes because the organization performs a specialized governmental function (a service the government would otherwise have to provide). If they do so effectively, the executive compensation should not be the issue. The issue is how do we continue to support organizations that save us money in the long run by taking care of the needy, educating our future doctors and nurses, and improving our communities.
Bernie,
These are very important messages you've posted this week.
Troubled by the Rescue Missions director's salary only because he deals with the most vulnerable people that need so much help? He doesn't need that salary. Every time the mission's commercial aired this week, thought of him and his $100K.
Now we read about a state candidate for office.
How can Nothstein be paid this much out of a total budget?
Isn't there some kind of watchdog at the PA Dept. of Revenue that "proofs" nonprofits and their honesty that qualifies them in the first place to be non profit? What does this say about his level of integrity?
Seems like this is a "non-profit" for everyone... except Nothstein.
Anonymous Anonymous said...
I have been to the Velodrome. Tickets are $6 for some events. If 17% of all revenue is going to Marty, that means that $1 from each ticket goes straight into his pocket. Call it the Nothstein surcharge!
November 24, 2017 at 8:40 AM
Wow.
"These are multi million dollar organizations."
If they're multi million dollar, let them use their own funds and leave the public alone.
Do we have this right? A guy that sits on a government board that decides funding for a county owned property where he is the boss is allowed to vote on that allocation as well?
Sounds like he's benefitting off of taxpayer dollars to me.
Curious to know how much of our tax dollars went into building the velodrome.
The blade might be known for razor-thin margins of victory on the track, but that doesn't seem to have translated to his personal profit margins.
Clearly, we now know what Nothstein's stake in all of this is.
Just another politician making thousands of dollars off the backs of taxpayers.
Another Congressional candidate bites the dust !
@8:43,
I still do not understand why people are so focused on the salaries of executives in the nonprofit world. The comment above calls them "disgusting". What is disgusting about someone with experience who leads an organization effectively being compensated at a level similar to that of the business sector? These are multi million dollar organizations, mostly leveraging human capital (which means multiple HR headaches) to accomplish important missions on a shoestring. $150,000 - $200,000 a year does not buy you yachts or a mansion in Saucon Valley. And yet when you read the comments from the earlier post, the same people decrying these salaries are positively giddy about forking over tax cuts to the uber rich. Just doesn't make sense. Bernie, I also think it is a mistake to tie executive compensation to the issue of tax exemption. That status comes because the organization performs a specialized governmental function (a service the government would otherwise have to provide). If they do so effectively, the executive compensation should not be the issue. The issue is how do we continue to support organizations that save us money in the long run by taking care of the needy, educating our future doctors and nurses, and improving our communities.
The focus may be because a non-profit can cry "poverty" and "need" while pulling on the heartstrings of those who donate. Meanwhile, the executives of these non-profits base their salary on job performance - including the amount they generate in donations.
A for-profit business has to sink or swim on its own (disregarding the tax breaks it receives on revenue).
And the government does not "have to" provide what non-profits offer. What they do provide is paid for by our tax dollars under programs that can be ended by the legislature.
When non-profit executives make an obscene amount of money, either by total amount, or a high percentage of total revenue, it sends a message that they aren't doing their job because they care about people. They are doing it for the money.
Anonymous@November 24, 2017 at 8:52 AM
"He doesn't need that salary"
How do you know he doesn't "need" that salary? What do you believe his salary should be? How much do you think he "needs"? How much do you believe would be "fair"? Whether one agrees or disagrees with the salary amount is not my point. What is the statement, "He doesn't need that salary", based on? Does anonymous know something we do not or does anonymous just think that that salary amount is too high?
IMO...many of these pay levels are biased on a job title and local "connections" (who they know) than they should. Recall that head of the Museum of Industry...who accomplished virtually nothing for years while collecting a very big salary. These organizations would do well to tie compensation above some more modest "base" salary to a very specific list of real accomplishments.
Jeff Fox
Your questions remind me of how some people define the word "rich".
https://www.washingtonpost.com/news/wonk/wp/2015/03/13/americans-define-rich-as-anyone-who-makes-more-money-than-they-do/?utm_term=.eedf23ffd634
Anon 12:55, you're exactly right. That is exactly how it works. Also the Board of Directors is selected and "educated" by the executive to acknowledge the 'us versus them dynamic. It is a con game and some of these people have parked themselves in their positions for years. It is disgusting when local homeowners making far less have to pay their salaries.
Don't forget how much Sam Bennett sucked out of Mayfair and Properties of Merit? Lots of scam artists in the Valley. She is in a league of her own.
Sam Bennett was in a league of her own. This Marty Nothstein scheme seems pretty bad though also. He is voting to send OUR taxpayer money to his non profit organization (for track repairs; not sure why we as taxpayers are paying for this in the first place, when the org is sitting on a pile of money. And this is even on top of other money the County sent them earlier.). He then gets a BIG salary from this same non profit. And we all know how this works...whatever money would have had to go for track repairs, can now go into a bigger salaray for Marty! How convenient! Sam Bennett 2008 = Marty Nothstein 2018
Well Bernie ; can’t wait to see your new post 15,000 US Dollars a week income plus housing , not just here but NYU in NYCity - abuse of the laws that were made 130 years ago are killing tax payers . You know I feel they can milk the cow so long before she dies .
" What do you believe his salary should be? How much do you think he "needs"? How much do you believe would be "fair"?"
Hi Jeff, This salary may be entirely fair. It might even be low. What I have done is compare salary to the total revenues generated by the nonprofit. Most are in the vicinity of 5%. Nothstein's is 17%. By that standard, his salary is excessive. But I will agree that there may be other factors involved in setting the salary at that level. I am also concerned that he not participate in any way in any discussions concerning the Velodrome since he is an elected official in the entity that owns the land, leases it to the Velodrome and provides maintenance.
People give of themselves and often make far too little to run organizations that save and change lives, so I get the reason non-profit status for a lot of places. I recognize it is also important that the Valley has a diverse collection if activities... But do we really need a highly specialized, tax subsidized bike path so this guy can make two average incomes?
It's not even like a skating rink that lots of people can enjoy! Who can afford a $20,000 bicycle that only works on that track? No one, (well maybe this guy Marty).
Bernie - thank you for reporting on this! You have uncovered blatant abuse by a government official, yet again. It seems pretty clear Marty has a conflict of interest on his hands. He should resign from the Board of Commissioners or from the Velodrome - he simply can’t do both (and get paid by both)! This is so obviously a problem, but someone like Marty thinks he can get away with it. This tells me there’s something rotten going on in Lehigh County. Thanks again for shining a light on this, Bernie!
Was Nothstien ever a regular at Fed Ed/Alan Jennings poker games?
Did Mr. Nothstien ever accept Fed Ed PAC funds?
Who sets the wage compensation? If they're offering it then I'm taking it.
Marty should be paid some sort of salary for his work and dedication. Smearing his reputation proves that your biased opinions are just a attempt to influence the taxpayers and voters. Therefore, I will be voting for Bill Liener. He is the right choice.
They need to reduce his douche's salary ASAP. 17% is way to much and total BS for a non profit. I think that its illegal for him to be voting on improvements when he is the executive director-
Numb nutz Nothstein needs to GO It smells BAD
Bernie - 17% of the Velodrome revenue goes to Marty?! That is appalling. TOTALLY APPALLING!! I gave them money in the past. NO MORE!! Why should I if they are going to waste it like that?!
To make matters worse, on the Congressional campaign Marty tells people he is a small business owner. (Not sure what his business is because he is listed as putting in 40 hrs a week at the Velodrome.) So if he is such a successful small business owner, why is he taking the Velodrome to the cleaners?! That money should go to the non profit programs, not his administrative salary.
I hope the Velodrome Board addresses this at their next meeting. If not, shame on them!
Hate? Jealousy? Lack of knowledge of how business (even non-profits work)? What can account for the nutty comments here? Nothstein's compensation is just about what any fly-by-night salesman earns. And do any of the jealous complainers here know what it takes to run an organization like the Velodrome? Frankly, I'm not much of a fan of cycling and I don't know Nothstein. but it does contribute one more fun asset in our community. The chief exec of that organization is chief cook and bottle washer with responsibilities all over the place. They are not exactly loaded with lot of Indians serving under the chief.
I wish there was this much outrage when the woman who was a principal in the Clinton Global Initiative (which brought her millions of dollars) while she was also in charge of the US 'global initiative' aka State Department.
JoshLCowen, not hate or jealousy but disgust. We THe People are tired of this s**** from slimbag politicians!!Outrage is because its taxpayer $$$ from LC and Marty Nothstien is voting to borrow on our dime to send $$$ to his own freakin nonprofit and to his own bigly salary.Are WE the TaxPayers supposed to be his personal ATM with no limits?!??
Marty Nothstein recuses himself from any vote involving the Velodrome. May facts will settle down your “outrage”.
JoshLCowen is a rank partisan whose odor floats over from MM's blog. The ONLY reason he is attempting to defend this is bc Nothstein is an R. And this is just a small criticism. Nothstein takes 17% of the revenue while most LV nonprofits take around 5%. I'd like to know why. Also, though Nothstein recused himself in one matter, I think he may have failed to recuse himself on the capital plan.
Just last week, he voted for a budget that includes the Velodrome. He should have recused himself from that portion which benefits the Velodrome. I should not have to be making this criticism.
Bernie starts a fire and smears good people to help his candidate shine.
Crap on John Brown about a prison during campaign, Thanksgiving morning Lamont McClure is talking about building a new prison.
@ 9:38PM, I respectfully disagree.
This isn't an R or D issue. I looked at the 990 forms and on top of his already sizeable 6-figure pay package from this non-profit, Nothstein seems to have gotten sweet 5% year on year raises-- even when revenues were down. If this is really about being a community org and "for the kids", then shouldn't more of the money actually be going to them?
Marty the "Blade" is helping the Valley go green by promoting a carbon free activity like cycling, hope when he is elected there will be a push for more bike lanes in the district along with subsidies for bicycle commuters.
Even Bernie once saw the light and rode his bike, we hope to havve him back in the fold soon.
Bernie is right. If this was on the up and up, then nobody would be making this criticism of Nothstein.
He either needs to step down from the Board of Commissions or leave his position at the Velodrome. Can't have your cake and eat it too.
Bernie,wbat is troublesome cor some oc these salaries is they are heavily subsidized by the taxpayer. The pay should be commensurate with the responsibilities. In some cases, other staff who handle the day go day are paid in the $30Ks. The pay should never be about percentage of grants landed or size of budget. Othersise, our full time political types are under paid. Like them or not,local government officials who are accessibke to tbe people and live within budgets have a heavy burden.
Sigh. OK, allow me to weigh in to defend this guy, Nothstein.
The executive director is a Olympic gold medalist and champion cyclist. If the Velodrome doesn't offer a salary in that neighborhood, some other cycling outfit will. If the Velodrome wants to be and I believe is world-class, it should have a director who knows what the fuck he is talking about.
I know none of these people (I had to google nothstein) and am just expressing a view based on limited info in the article. I'd be interested to see Nothstein's successes or failures running the place before determining if he is overpaid.
@9:27AM
Sorry, but I don't think you get it. He is voting for money as an elected official, and it is going to a non profit organization he runs. This is taxpayer money that is getting passed through for his benefit, and ultimately helps his bloated salary. That is the problem. We ARE NOT just talking about the competitive free market using private resources.
I agree with whoever made these two points earlier:
1. Nothstein should stop double dipping and he should step down from one of his two taxpayer funder/partially funded positions (commissioner and executive director) because there is a clear conflict there, and
2. The Velodrome board of directors should be looking at the salary to see if it is too high (it seems it is at 17%). The board should also now be looking at his part time commissioner position and the time he is putting into his congressional campaign to see if he is still putting in the 40 hours per week he is claiming and is getting paid for, partially with taxpayer dollars at the Velodrome.
Bernie - you mentioned that Nothstein voted on something last week relating to the Velodrome. What was that?
I thought I read that above that is recusing himself from matters concerning the Velodrome.
Seems like he did once, but not the other time. Doesn't make up for him getting 17% of the Velodrome budget. He's getting close to Sam Bennett territory!
It was just a few years ago that the Velodrome asked the county for $600,000 to keep it above water. I live close enough to the Velodrome to be able to enjoy their race calls while sitting in my house with the windows closed, and the lovely sounds of rap music at 8 AM on Saturday mornings before the Trexlertown Farmers' market opens. Neighbors have fought with thim for years over the excessive noise, and he gives them the political middle finger. Did you know he won an Olympic medal? He makes sure to tell you. Honestly, The Velodrome as it presently exists is a stain on the Trexlertown area. Maybe with better management focusing on being a better community leader instead of an arrogant know it all, people here would appreciate it. Instead, residents see it as a annoyance. Nothstein for Congress might be a good thing if it gets him out of here.
2:50,in fairness, I do not pay attention to LC the way I do to NC. That’s probably why their government is better. In question that Nothstein recused himself in a vote that directly impacted the Velodrome. But I was unable to find a similar recusal when he voted for the capital plan, which includes the Velodrome. So does the budget, at least indirectly. I5 may very well be impossible for him to extricate himself from the Velod4ome. If that is so, I would hope he would resign.
Can't remember when exactly. It was the capital plan.
"Waaaaah, the velodrome is noisy. Its a stain on Trexlertown."
"Waaaah, rap music in the morning!"
Really? Give me a break. Call the cops if you think there is a noise issue.
lets see what the Lehigh Valley Planning Commission pays their employees....on taxes from Lehigh and Northampton Counties
Part of the funding comes from the counties, but most of the funding comes from the federal government.
When pat McDonough ran the place and raised the funds to bring Olympic trials, World Cup and more to the track (and full stands most weeks) his salary was more like 50k. Even with inflation, that doesn’t get you anywhere near Nothstein’s level. More important I don’t think the budget of the velodrome has changed at all. In the 1990s the total budget was high 6 figures, the same as today. It’s not like he’s bringing in more funds, running more community programs, bringing in massive events that produce huge crowds and generate revenue for the local economy. By any measure he’s performing worse and being paid more. It’s outrageous.
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