The Hollywood Foreign Press Association has steadily increased fees paid to members for various tasks related to the Golden Globe Awards, according to a Los Angeles Times report that may raise tax issues for the nonprofit journalism organization and its members.
The small, united HFPA has long been scrutinized for many of its practices, particularly as its Golden Globes Awards subscription has grown in NBC influence, audience and license fees. Much of that focus has been on the wines and dinners of HFPA members, and how much expensive travel for films and TV sets, gifts and other perks influence the nomination and voting process for Globes.
But in a new story published by the Los Angeles Times on Sunday, the organization’s growing practice of paying high fees to many of its 87 members for various tasks, including serving on committees and moderating panels, caused astonishment inside and outside the HFPA.
According to the newspaper, HFPA budgeted $ 2.15 million in its current fiscal year (ending June 2021) to pay members for several reasons. The newspaper noted that two dozen members received $ 3,465 to watch foreign films in January, while members of a travel committee receive $ 2,310 a month, while members of the archives committee earn $ 2,200 a month and members of the film festival committee receive $ 1,100 per month. A history committee pays members $ 1,000 a month.
News conference moderators earn $ 1,200 a month, while articles for the HFPA website also earn extra money for members (a total of $ 585,000 in the fiscal year ended June 2020).
HFPA also generously pays off its board, writes the Times, noting that five directors received between $ 63,433 and $ 135,957 in the fiscal year ended June 30, 2019. Board directors received between $ 22,915 and $ 78,079 in the same period.
Tax experts cited by the newspaper consider payments unusual, especially for a tax-free organization. Insiders told the Times that the amount of money paid to members began to increase dramatically about a decade ago, when the journalism market began its rapid economic downturn.
Sources count Variety that under the late HFPA president Lorenzo Soria, who died last August, the organization had external audits conducted on its compensation practices. The organization is believed to have made minor adjustments to ensure compliance with the tax laws governing nonprofit organizations. Soria was in his third term as president of HFPA, which began in 2019, at the time of his death.
HFPA has also benefited greatly from the success of the Globes ratings, which has become one of the most watched non-sports broadcasts of the year, and now earns the organization $ 27.4 million from NBC, a gain of more than $ 3, 6 million in 2017. Internal documents show that HFPA had $ 50 million in cash at the end of October, according to the Times. Licensing fees have also enabled HFPA to increase the value of its charitable contributions, with more than $ 5 million in donations to a number of organizations in 2020.
HFPA has long faced criticism that its nominations are influenced by the generosity offered by studio award campaigns. The Times noted that HFPA members were presented with a trip to Paris on Paramount TV for a visit to the set of the Netflix comedy “Emily in Paris”, which surprised some award predictors by receiving a nomination to the Globe for best comedy series . (But HFPA members were not taken on the trip, which was similar in nature to other events for competitors. And people familiar with the competition dispute the fact that it was an unusual event, describing it as an economic trip. with mediocre food. As Variety noted, “Emily in Paris” was an indication that is in line with the group’s previous choices.)
Variety contacted the HFPA for comment. A source close to the organization suggested that members are compensated only when they provide services to HFPA that are beyond their capacity as members, acting as employees. The source said that HFPA’s compensation decisions “are based on an assessment of compensation practices by similar nonprofits and market rates for such services,” and assessed by a professional non-profit compensation consultant and an outside lawyer. .
The source also noted that the HFPA does not have highly paid non-member executives and reports the compensation paid to employees and senior officers through the IRS, and characterizes that compensation as “relatively modest”.
“We are aware of the unprecedented economic challenges that our employees face due to the effects of the pandemic,” an HFPA representative told the LA Times. “HFPA is committed to maintaining the continuity of our qualified and experienced workforce to ensure our future success and will continue to reward them for the range of services they provide to the organization.”
A story related to the LA Times highlighted the lack of black affiliation with the HFPA. The Times reported that the 87-member group has limited its membership for many years, in part due to competition concerns. The HFPA has several black members, but no black. An HFPA spokesman said the organization is “committed to resolving” the lack of black representation.
Cynthia Littleton contributed to this report.