Executive Compensation at the March of Dimes (2019)
2019 was not a great year for the March of Dimes and yet, they continue to endure. Just six years ago, the March of Dimes had $75 million in net fund assets and was raising nearly $200 million annually but they were spending more than they raised. Since then, revenue has declined and the organization went into a negative net fund position because they were spending $8-$27 million more than they raised until 2016, had to fund a pension/post retirement fund for employees which for some reason was not funded (and is still not fully funded by $66 million), and had losses on investments. Things were not looking good by 2016 so the organization brought in a new president in 2017 following the retirement of the longtime president.
Since 2017, revenue has continued to decline with the March of Dimes reporting total revenue of $130 million in 2019, nearly all of which came from contributions, gifts, and grants), $11 million or 8% lower than in 2018, despite the use of multiple professional fundraisers and heavy advertising in the Wall Street Journal.
Expenses totaled $126 million with the largest expense being compensation for the 856 employees who received $65 million, which equates to an average compensation of $76,000. 100 employees received more than $100,000 in compensation with the 15 most highly compensated employees reported to be:
- $562,933: Stacey D Stewart, President and CEO
- $419,353: Kelle H Moley, SVP, Chief Scientific Officer
- $405,190: Rahul Guptal, SVP, Chief Medical Officer
- $336,238: David C Damond, SVP, CFO/Asst Treasurer
- $310,755: David J Hampton, II, SVP and Chief Development Officer
- $307,926: Adrian P Mollo, SVP, GC/Asst Secretary (beginning 3/2019)
- $297,894: Lisa F Waddell, SVP, MCH IMP and Deputy Medical Officer
- $285,426: Nicholas M DiFranza, SVP and Chief Tech Officer
- $265,806: Deirdre Maloney, VP, Human Resources
- $263,885: Cynthia H Rahman, SVP, Chief MO (beginning 1/2019)
- $253,780: Darlene R Slaughter, VP and Chief PO (beginning 2/2019)
- $245,457: Kelly Ernst, SVP, Market Impact
- $237,693: Florenda H Newton, VP, Corporate Engagement
- $214,873: Alison A Spera, VP, Market Impact
The 15 most highly compensated employees received $4.4 million or an average compensation of nearly $300,000. 10 of the 15 (67%) most highly compensated employees are female while 5 (33%) are male. The Board – made up of 19 independent trustees – lists 10 trustees on the Form 990 but 5 left in 2019.
The March of Dimes provided gross up payments or tax indemnification.
30 independent contractors received more than $100,000 in compensation. The 5 most highly compensated independent contractors were reported to be:
- $2,105,451: Direct Donor TV, of Bowie, Maryland for development and air time
- $1,844,321: True North, of NY, NY for advertising
- $1,172,168: Stanton Blackwell, of Arlington, VA for management consulting
- $1,108,260: Home Front Communication, of Washington, DC for communications
- $ 875,991: Purpose Campaigns, LLC, of NY, NY for video/photo consulting
It is also important to point out the March of Dimes relies heavily on outside fundraisers and consultants and they paid handsomely for these dollars:
- Infocision Management Corp, of Akron, OH, a telemarketing firm raised $623,650 for March of Dimes; Infocision retained $360,131 netting the March of Dimes $263,519.
- Thompson Habib and Denison, of Lexington, WA was paid $591,922 for fundraising consulting.
- Blue State Digital, Inc, of NY, NY raised $679,090 for March of Dimes. Blue State Digital retained $208,174 netting the March of Dimes $470,916.
- M & R Strategic Services, of Washington, DC raised $627,852. M & R Strategic Services retained $251,029 netting the March of Dimes $376,823.
- Edge Direct, LLC, of Baltimore, MD was paid $625,002 for fundraising consulting.
Three firms above – Infocision, Blue State Digital, and M & R raised $1.9 million, retained approximately $700,000 (38%) netting the March of Dimes approximately $1.2 million (62% of revenue raised).
To read the IRS Form 990 (2019), click here.