But while the fundraiser provides millions toward cancer research, the 100 percent claim is not accurate.
Funding sponsors pony up more than $2 million a year that is put into a separate pot for Pelotonia’s operational costs, including $363,495 in compensation for Executive Director Tom Lennox and $121,680 for Operations Director Kelley Griesmer in 2009, according to an IRS filing.
Lennox’s compensation climbed to $406,934 in 2010, according to Pelotonia board Chairman Daniel Rosenthal.
Daniel Borochoff, president of Charity Watch, says 100 percent promises like the one from Pelotonia are “very misleading” to the public and donors.
“Money is fungible. It doesn’t make the overhead go away. It’s just an accounting gimmick,” Borochoff said.
Officials for Pelotonia, which is an entity of Ohio State University Foundation, disagree and say there is no intent to mislead.
“The hallmark of Pelotonia, without question, is that 100 percent of the rider-raised revenues go directly to cancer research at Ohio State,” Rosenthal said. “And that is a founding principle of the organization ... and our funding partners support that principle, and that’s why they provide the funds to offset all of the operating expenses of the organization.”
Borochoff, whose watchdog organization rates charities so that donors can make informed decisions on giving, said Lennox’s salary and bonus is high compared with similar charities.
The director of the Columbus Marathon, which includes more than 15,000 runners, makes less than $100,000, and the director of the Cincinnati Flying Pig Marathon makes $100,000, according to those organizations’ 2010 filings with the IRS.
However, marathon organizers don’t have the added burden of getting participants to raise $1,200 to $2,200 each.
The Pan Mass Challenge may be more comparable to Pelotonia. Cyclists for this ride have raised $303 million over the last 32 years for research at the Dana-Farber Cancer Institute in Boston. Pan Mass also promises that 100 percent of every rider raised dollar goes to charity, and it has corporate sponsors pick up overhead costs, including $543,592 in compensation for Billy Starr, the event founder and director. Starr’s compensation is tied to how much the ride raises, according to the IRS 990 form.
Pelotonia, which is modeled on Pan Mass, paid Starr’s company $159,454 for advice on how to get started.
In 2009, the inaugural year, Pelotonia paid Lennox $363,495 and donated $4.5 million, with 2,265 riders.
In 2008, Pan Mass paid Starr $543,592 and donated $35 million, with 5,500 riders.
Lennox, a cancer survivor, is a former executive at Abercrombie & Fitch. He was not available for comment on this story.
Rosenthal said, “We hired Tom away from a good paying job at Abercrombie & Fitch because we thought he was the right person to start Pelotonia. Three years ago, Pelotonia didn’t exist.”
His pay is appropriate given where he was recruited from and the aspirations set by the board, Rosenthal said.
“To take an organization from nothing to $25 million net ... directly for cancer research is astounding,” he said.
“And the board feels that Tom has done a magnificent job taking the organization from a dream to the largest fundraiser at Ohio State and the second largest run/walk/ride fundraiser in the country.”
Contact this reporter at (614) 224-1624 or lbischoff@DaytonDailyNews.com.
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