Payments to Arizona Charity Officials: How Their Compensation Works

Two top officials of the Don Stewart Association, a religious organization in Phoenix, and their family

members have received compensation from five of the 12 Arizona organizations that were formed in part to seek contributions through the federal government’s annual charity drive.

George E. Zaksek, chief financial officer of the Don Stewart Association, was paid $92,000 to $105,000 from 2002 through 2005 by the Cancer Aid and Research Fund as its board secretary, or as an employee, for 20 hours (or “20+” hours) of work each week, the organization reported on its federal informational tax returns.

The Cancer Aid and Research Fund says on its Form 990 return that it is an “international organization that provides information and assistance to the general public concerning cancer and other diseases.”

In 2005, Mr. Zaksek received $37,000 for “20+” hours of work from the Childhood Diabetes Research Institute as its president.

The diabetes charity says on its informational tax return that it is “an international organization that provides information and assistance to the general public concerning childhood degenerative diseases.”

Mr. Zaksek’s wife, Carol E. Zaksek, was paid $123,000 to $157,000 from 2002 through 2005 by the Diabetes Aid and Research Fund for 40 hours of work each week as its president.

The charity says on its Form 990 that it “provides research and educational grants, supports and sponsors programs for children with diabetes, and provides medical supplies for hospitals and clinics.”

Matthew Zaksek, who is the son of George and Carol Zaksek, was paid $10,000 in 2005 for “20+” hours of work each week by the Childhood Diabetes Research Institute as an employee.

The Don Stewart Association’s secretary and treasurer, Larry MacKay, received $79,000 to $115,000 from 2002 through 2005 from the Cancer Aid and Research Fund for 20 hours (or “20+” hours) of work each week, according to the charity’s Form 990.

Mr. MacKay’s wife, Joy D. MacKay, was paid $34,000 to $92,000 from 2002 through 2004 as vice president of the Diabetes Aid and Research Fund for 40 hours of work each week.

In 2004, Ms. MacKay also received $71,600 from the Breast Cancer Research and Assistance Fund as its president for “40+” hours of work each week, according to the charity. The breast-cancer charity says on its Form 990 that it is “an international organization that provides information and assistance to the general public concerning breast cancer and other diseases.”

Cancer Charity

Michael A. MacKay, the son of Larry and Joy MacKay, was paid between $41,000 and $48,000 from 2003 through 2005 by the Children’s Cancer Aid and Research Institute for “40+” hours of work each week.

The charity says on its federal informational tax return that it is “an international organization that provides information and assistance to the general public concerning childhood cancer and degenerative diseases.”

Compensation paid to top officials of the 12 Arizona nonprofit organizations is reasonable for the services provided to the groups and “in line with the support” that the charities receive overall, says the organizations’ accountant, James E. Raftery.

Some of the charities have independent compensation committees that set salaries, says Mr. Raftery, who adds that his own audits of all 12 of the organizations check compensation paid by the organizations against figures from a national compensation survey.

Moreover, Mr. Raftery says, the number of hours that the officials work each week, noted by charities on the tax returns, “are estimates and in some cases can vary greatly” from how much they truly work.

It is not clear how much if anything George Zaksek makes from his job at the Don Stewart Association.

A federal tax return filed by Feed My People Children’s Charities for 2005 says that Larry MacKay received $189,480 from the Don Stewart Association in wages and a parsonage allowance.

Philip S. Haney, the lawyer for the Don Stewart Association, declined to discuss compensation matters.

In a letter to The Chronicle, Mr. Haney said: “We assure you that the executive compensation paid by Don Stewart Association Church is reviewed by compensation experts and by an independent compensation committee providing services to the church.”