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| FOR IMMEDIATE RELEASE |
| State Rep. Tony DeLuca
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DeLuca proposal would prohibit compensation to charity board members
HARRISBURG, Jan. 26 – State Rep. Tony DeLuca, D-Allegheny, today introduced legislation that would prohibit those who serve on charitable boards from receiving compensation for doing so.
"I grew concerned after reading news reports about the compensation distributed to Highmark board members for their service on a not-for-profit board," DeLuca said. "It troubles me that we continue to see rate increases in the health insurance marketplace. There is no sound justification for exorbitant dollars being given to individuals who meet only a handful of times each year."
DeLuca's proposal would prevent compensation to board members of not-for-profit insurance entities as well as boards for purely public charities and other nonprofit organizations.
DeLuca said published reports indicate the average compensation to a Highmark board member last year was $64,142 and ranged from $23,955 to $110,075 for the board chairman.
"It runs counter to the concept of nonprofits to financially compensate volunteers to sit on the board of a nonprofit organization," said DeLuca, Democratic chairman of the House Insurance Committee.
DeLuca said other states are dealing with this issue.
"Massachusetts Attorney General Martha Coakley is investigating what she calls, 'unjustified' explanations," DeLuca said. "Coakley has asked those boards to justify why they should be treated differently from other charitable boards.
"I realize that most members of charitable boards volunteer their services," DeLuca said. "These organizations realize significant tax and other benefits because of their charitable status and I believe all such boards should operate this way."
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