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Russell Wilson's Why Not You Foundation reportedly spent more on employee salaries than charitable activities

Denver Broncos quarterback Russell Wilson won the Walter Payton NFL Man of the Year award in 2020 partly because of his Why Not You Foundation. But in the two years since then, the organization spent twice as much money on its employees as it contributed to charitable activities, according to a six-month investigation by USA Today.

Wilson's foundation reported that it spent $600,000 on charity and $1.1 million on employee salaries and benefits from 2020 to 2021, according to federal tax records obtained by USA Today. In the simplest of terms, that means the Why Not You Foundation spent 21.3 cents of every dollar on charitable activities in 2020 and 27.2 cents of every dollar on charitable activities in 2021. Over the past eight years, only 39.6 cents of every dollar was spent on charity, per tax documents.

Ryan Tarpley, the CEO of the foundation who also works for Ciara and Russell Wilson’s family office, made more than $200,000 annually the past two years, while executive director Carly Young earned more than $150,000 annually. Scott Pickett, the foundation's CFO who is also the president of Wilson’s brand management and production company, made around $60,000 per year for part-time work.

This is a big deal not just because of the disparity between employee salaries and charitable contributions but also because of how much those top-level employees make relative to the industry. Tarpley's salary is reportedly double the median for his position, while his and Young's are in the 90th percentile, per Candid, a charity watchdog group.

Mark Rodgers, Wilson’s attorney and sports agent, negotiated the contracts and told USA Today that he believes both employees were "paid appropriately based on their talent, experience and the knowledge they were bringing to us." But Andrew Morton, a nonprofit oversight attorney, told USA Today that he thinks there is a “high probability” the IRS could penalize the foundation for excessive benefits.

“The nonprofit space is governed by fair market value,” Morton said. “You can say, ‘Oh, they’re super talented.’ That’s fine. In the for-profit space, the sky is the limit. Pay them whatever you want. But in the nonprofit space, no matter how talented you are, no matter how qualified you are, you are subject to those limits for comparable compensation.”

Tarpley's connection to both the foundation and as chief strategy officer for the Wilson family office (per his LinkedIn page) is also troubling because, as Morton explains: "It is absolutely, categorically illegal to have a nonprofit pay you to do work outside of supporting its charitable purposes, let alone furthering private interests.”

Rodgers, though, said Tarpley was paid separately for each position, despite listing each as a full-time role.

So how did the nonprofit gain such acclaim? USA Today concluded it's because the Why Not You Foundation boasts its charitable partnerships with other organizations rather than its own contributions.

For example, the annual Wilson Celebrity Invitational, which includes a golf tournament, concert and auction, reportedly raised $2.6 million in 2019 alongside Safeway/Albertsons grocery stores to benefit pediatric cancer research at Seattle Children’s Hospital. But 2019 tax records show the foundation donated only $78,000 while the Invitational cost $860,000.

“Millions of dollars in funds raised by the Why Not You Foundation go through our partners who can deliver that money where it is needed more directly,” Pickett wrote in a statement to USA Today. “Those funds were raised, in large part, through the work of the foundation, but you would not see all of those dollars in the foundation’s tax documents.”

Nonprofit organizations are tricky to sift through because of the transfer of funds between people and charities. The issue, as USA Today's investigation explains, is that the Why Not You Foundation claims it needs to pay its employees so much despite underwhelming revenue because of its connection to other partners. But Morton believes that isn't a truthful argument when it comes to the nonprofit space.

“Nonprofit compensation is based on the nonprofit’s own revenues,” Morton said. “It is categorical nonsense to say, ‘We have funds go to third parties, and our foundation exists to pay for the expenses.' That doesn’t justify the salaries. You cannot point to some hypothetical third-party involvement and say, ‘We really raised $2 million, so this salary makes sense.’ No, you didn’t. You raised what your 990 says you raised. That’s the end of the discussion.”

Russell Wilson's foundation has spent more on employee salaries than charity. (Photo by Michael Owens/Getty Images)
Russell Wilson's foundation has spent more on employee salaries than charity. (Photo by Michael Owens/Getty Images)
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