An organization is organization. It’s supposed to make sense.
Organizing a nonprofit (NP) and for-profit (FP) can be very similar. They both have a Board as their governance. They create mission statements (although this began in the nonprofit sector) and draft visions. Each one has an Executive Director/CEO, a financial advisor, and lawyers. The list can go on.
The difference between them is that the Board in a NP volunteer their time and resources. Nonprofits are not a pyramid. They do not make money to serve the head-although they can serve themselves just as much as a corporation. A NP mainly receives (sometimes internally makes) money to serve the needs of the community (uschamber).
It is important to note though that a NP can have Board members who are also employees, although this is not highly favored due to the possible conflict of interest(s). Similar to it not being the best idea to post religious symbols in a public space at your business (which PAF hasn’t shied away from). If a NP does have employees on the Board, they are legally not allowed to vote on specific decisions-especially financial ones that impact themselves. This should be laid out clearly in the NP’s bylaws (governing procedures) that were constructed along with their specific tax filing.
Simple enough right?
According to Project Angel Food’s website, it has twenty-one Board of Directors with three CEOs, nine executive staff (counting Richard Ayoub again), fifteen Board of Trustees, nine Ambassador Councils and according to Human Resources (HR), around ninety employees. Mr. Ayoub sits on the Board and is a CEO. Our supposedly “sister companies” (according to PAF’s Dispatch Supervisor), Project Open Hand, Open Hand Atlanta , and Mama's Kitchen do not even do this. However, PAF’s Bylaws (available upon PAF request) allow this to happen with the stipulation one can not vote for being paid as a Board Member and that the pay is “just and reasonable.” Unfortunately, hearings from voters are not made public to see how this technically pays out, I mean plays out, for Ayoub.
A NP is made by the people, for the people; thus, should be the faces of those people. PAF does well in photographing its events and ambiance, but perhaps too well or... too Hollywood-the same accusation workers had with their first CEO. Ayoub and celebrities become our “new face” with the occasional picture of staff posted on social media. (Note: It wasn’t until a couple of months ago did we sign a release of our photos/names due to me addressing the issue.) We understand the image that “has to be presented” to make it in such a city, but when “saving face” becomes more important than those working their butts off the NP has lost its vision. Ayoub is not someone who takes criticism well, will hide what's going on, does not know his employees, and lacks general respectful people skills. PAF, according to one Dispatch manager, “is not what it used to be.” It may seem like it’s for the people but the money speaks differently.
“Currently those with gross receipts exceeding $1,028,500 for any year” (Guide For Charities, pg. 39) are considered a big NP by the Attorney General Rob Bonita of California. Which is four million less than what it seemed to be in 2005 according to the Center of Nonprofit Management’s Southern California Nonprofit Sector Report (pg. 20) Some of the largest revenues seen in ‘2020 by nonprofits were Feeding America ($4.21 B), Salvation Army (5.79 B), and Goodwill (7.41 B)’ (Forbes). In CA. specifically, the top dollar NPs are Kaiser, Schwab, and Dignity Health; with the biggest hubs of nonprofit revenue coming in from Los Angeles & San Francisco (CauseIQ).
PAF sits right in the epicenter. In 2020, PAF brought in $11M. In 2021, $13M. And in 2022, $12M. (PAF Financials). According to Nonprofit Explorer, in 2020 Ayoub made $205,000 with an “other” of $12,570. In 2021, $225,606 with an “other” of $13,117. And in 2022, $234,859 with an “other” of $39,001. Executive compensation has only been around 4% of the cost while other salaries and wages have been near 40%. Interesting how a NP leader can still get a significant raise even if revenues have declined, but those “below” get less of a raise because there was “no inflation” this year. (Truth is there was just less inflation (consumer price)). PAF proudly displays that “our driver starting wage went up from $17.50 in 2021 to $23 in Oct. 23…a 32% increase in two years, with the new starting wage being $21.25.” It is true that this is higher than LA’s minimum wage and for a single-person household, this is considered “livable” (LivingWageCalculator).
What they don’t reveal are the workers working outside of their scope or “wearing too many hats” and not being compensated for it. It’s nice to just say everyone gets paid decently and easier to make people do more when it's for a great cause, but this is what causes burnout, tensions, and high turnovers. I know one coworker who was doing management duties for months alongside their original position and not being compensated. Countless times they told HR and Ayoub, “This is it, either I get a higher wage or find somebody else.” The leadership delegated over and over again; they even brought in a new manager to help fix things. This manager still allowed this coworker to do management duties without being compensated and depended on them to come in earlier than themselves. Then, surprisingly during the time we were under investigation (future blog post), this coworker finally got their raise. However, there is still another coworker I know who has gotten two titles due to new responsibilities and still hasn’t been compensated.
When an organization gets messy and in my opinion Project Angel Food has, it's time to re-evaluate and re-adjust. A nonprofit needs to make sense to the community because it operates differently internally (or at least it should). A nonprofit can not evaluate itself, it takes the community. How would you judge Project Angel Food? What has been your experience?
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