La Grange Nonprofit Chief's Pay Deemed High

LA GRANGE, IL – The head of a La Grange nonprofit group makes $171,000 a year, nearly a quarter of the organization's entire budget.

Alan Morales, executive director of LeaderShip, is dealing with sexual harassment allegations from one of the group's main funders, the Lyons Township Mental Health Commission.

The commission recently pulled its nearly $300,000 annual grant, putting LeaderShop's future in jeopardy. Morales plans to leave in September.

According to the nonprofit's tax forms, Morales' salary was $154,000 in 2020, rising to $168,000 in 2021 and $171,000 in 2022.

In 2020, the median compensation for the head of a nonprofit with an annual budget of less than $1 million was $65,000, according to Candid, a group that examines nonprofits.

"Yes, the salary is high for the size of the organization," Linn Meyer, president of LeaderShop's board, said in an email to Patch. "However, Alan has worked for the LeaderShop for 21 years, so that explains part of it."

The mental health commission gives grants to several nonprofits, including Countryside-based Pillars Community Health. As of last year, Pillars CEO Angela Curran's salary was $223,000, according to nonprofit tax forms. She runs an organization with a budget of more than $20 million, which is nearly 30 times LeaderShop's.

Another comparison is the salary for Western Springs Village Manager Ellen Baer, who makes $177,000 a year. The village's budget is nearly $30 million.

Morales has a bachelor's degree in applied science and a master's degree in business administration.

In a June 3 letter to Morales, the commission's lawyer, Brian Miller, focused on the sexual harassment allegations. But he also spoke about the group's finances.

He said LeaderShop's reliance on the commission for much of its budget was not sustainable and did not reflect proper stewardship.

"As evidenced by the LeaderShop's response to your behavior, the precarious financial state of the organization can cause it to topple for any reason, at any time," Miller told Morales.

The organization, he said, should address its "financial insecurity."

"In addition, the excessive compensation paid to executives at the LeaderShop also demonstrates poor fiscal management and misplaced priorities," Miller said.

In a reply last week, Meyer took exception to Miller's assertions.

"The fact is our financial status and salary structure have been known to (the commission) for many, many years and have never been raised in a formal written communication as an issue of concern by (the commission). Ever," she said.

Because of the lost grant, Morales told Patch in an email this week that three full-time positions and one part-time position were being eliminated.

He also said his salary exceeds the budget constraints, which he said was his reason for leaving. The salary for his replacement will "better align" with the new budget, he said.

The position is being advertised for $75,000 to $125,000.