Re: The IRS and NHRA, you gotta see this.
 

This is very interesting indeed. But, this may be a case of cutting off our noses to spite our faces. Sure, I would LOVE to have a voice in how this organization is run. But, let's assume that the IRS revokes the NHRA not-for-profit status. Then what? NHRA simply becomes a private corporation, we become "customers" rather than "members", and Compton et. al continue to receive their inordinate amounts of pay, and we continue to have no say in how the organization is run. What other company do you have a say in how it is run, simply as a customer? Chrysler? Nope. Cargill? Nope. Mars (M&Ms)? Nope. These are some of the largest private companies in the U.S.

How, you ask, will NHRA be able to continue to afford to pay these ridiculous wages once they have to pay income tax as well? You guessed it, more sportsman racing "enhancements". NHRA will just raise the prices of everything to compensate for their lost revenue. They've done it before and we've never done anything about it. Why would we now?

So, though I want to have a voice, and I want to see these a-holes held accountable, it still may not be in my best interests as a drag racer to see this happen (though it WILL be in my best interests as a tax-paying citizen).

Should be interesting to say the least...

Re: The IRS and NHRA, you gotta see this.
 

Get the popcorn ready this is going to be a party!

Lets start a pool as to when the IRS will show up in Glendora with the black Chevy Suburbans (not the offical truck of NHRA), to load file cabinets, computers, and bank records. That would make a good You Tube video.

As "Deep Throat" said 'Follow The Money'!!!

Re: The IRS and NHRA, you gotta see this.
 

Yeah, Light gets over $6,000 an hour! I would do his job AND wash the windows for that amount! How do you defend that kind of pay? Jim

Re: The IRS and NHRA, you gotta see this.
 

Part of the complaint says that the NHRA compensation arrangements may be excessive.

As an example they use the 2006 compensation of Mr. Thomas Compton. In 2006 Mr. Compton was paid $712,317. They say the average compensation paid to CEOs at the ten largest trade associations was $642,447. So, Mr. Compton was paid 9.8% more than the average.

I don't know if the NHRA operates like a for-profit business or not, but Mr. Compton's salary doesn't seem that excessive to me when compared with the others. If he were making 30-50% more than the average I would say yes, that's excessive, but less than 10%?

Also, could it be possible that the anonymous client has the initials BN? :)


-Toby

Re: The IRS and NHRA, you gotta see this.
 

This complaint should trigger a detailed audit. I think the bunch in charge might have a tough time surviving a thorough IRS audit. I don't think there is any way that Compton,et.al will be allowed to steal the company. They are only employees not owners. They don't have any money invested in NHRA and don't own any stock in the company. I do know also there has been a complaint filed with the CA attorney General and they may be waiting to see what happens with the IRS. It's going to be really interesting to see where all the expense money goes [$120 million in 2008].

Re: The IRS and NHRA, you gotta see this.
 

Toby I would guess NHRA is no where close to one of the top ten trade associations in the US. The US chamber of commerce is one of the larger ones. How about Dallas Gardner , 10hrs. a week for $317,000 per year. The big money is in their expenses and where all that goes will be interesting.

Re: The IRS and NHRA, you gotta see this.
 

Well, in the same paragraph it says:

"... we evaluated the comparable compensation data detailed in the American Society of Association Executives compensation report."


-Toby

Re: The IRS and NHRA, you gotta see this.
 

Haven't heard this one used in a while,
"Here Come Da Judge!"

Re: The IRS and NHRA, you gotta see this.
 

Dallas Gardener is the one who worked 1 hr.I'm sure Graham Light,like himor not,puts in a weeks work.
This crew has no one but themselves to blame.I'm sure things will change as far as who will pay fees.The pros will have to share a bit more of the burden.

Re: The IRS and NHRA, you gotta see this.
 

Toby,

The complaint says that Compton made 10% more than the average of the TOP 10 LARGEST trade organizations...not 10% more than the average. It went on to say that the 75th percentile, or the average salary of the top 24 LARGEST trade organizations, was $621,750, meaning that Compton's total compensation was 24% above that average. It doesn't say what the absolute average of all not-for-profit trade organizations is, but my guess is that it is much less, probably in the $400,000 range. The complaint also does not say where NHRA ranks size-wise among all not-for-profit trade organizations.