Thursday, July 06, 2006

Salaries in Communal Organizations

R. Daniel Z. Feldman, "Tzedakah and Tzedek: Halachic & Ethical Financial Requirements Pertaining to Charitable Organizations" (PDF), p. 16:

It is understood that the organization salaries its staff[20] and uses a percentage of the funds collected for internal expenses[21]. The calculation of this disbursement is understandably complex; one principle to keep in mind, though, is that the funds should be used in a manner where it could be reasonably assumed that were the donor to be informed, he would not regret his donation. Otherwise, the collection was done under misrepresented circumstances,[22] and risks invalidating the efforts of honest donors.[23] The organization has the right to set terms for its executives and to appoint them or replace them in accordance with communal norms.[24]

[20] See Tzedakah U'Mishpat, 7, n. 4, in detail.
[21] Note the discussion in Tzedakah U’Mishpat, 7, n. 23.
[22] See Responsa Mishneh Halakhot, IV, 237 and Responsa Teshuvot V’Hanhagot, II, 475.
[23] See ibid., 238.
[24] See Rama, Yoreh Deah, 257:2, and Shach. See also Tzedakah U’Mishpat, 7, n. 22 and sources cited there.

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