Charities have come under fire of late, namely after the revelation that only four cents in the dollar needs to be actually donated to the actual charity with the rest going to administration costs. This is fact.
CEOs of charities regularly command salaries over over $300,000 but the argument is that for a charity to be successful they need the right people at the helm and that necessitates employing people in the private sector which of course means higher salaries.
I sat down with CEO of leading Australian charity ‘The Human Fund’, Josh Waterman, who explain to me the absolute necessity for such exorbitant salaries on his yacht moored off Point Piper.
Waterman fills up my champagne glass with the last bottle of Cristal. I reach for a duck ragu canape and listen. “The thing is, you get what you pay for. I have years of experience in the private sector building brands, building companies and increasing dividends to stockholders. I’ve been on the board of multiple companies. I know what I’m doing, but obviously that comes with a cost.”
With a mouthful of oysters, Waterman continues, “The Human Fund has become an incredibly successful charity. We have over 60 people working for us, we have recently had to move offices because we needed a larger space, we’re now located in the CBD making us more attractive to potential investors. We recently upgraded our boardroom and have the very latest interactive space to show investors just what we can do.”
“I’m here 5 days a week. I have to be in order to show potential investors.”
In the office I ask?
“No, on the yacht”, he responds. “The yacht is essential to doing business. It lets investors know we’re a serious charity. That’s why we have a town car service to pick up clients from the airport and we only ever fly first class. It’s all about perception.”
I ask how much actual money has been donated to the charity. Mr Waterman isn’t sure.
“Whatever money is going to the charity is the amount that needs to go to the charity.”
When I ask what the charity actually does he’s quite forthright.
“I have absolutely no idea! When I mentioned the charity was successful I was referring to the salaries of the employees. The charity supports over 60 people! We’re very successful. I just invested in a winery do you want to sail there?”
So after a weekend in the Hunter Valley I must be honest – this reporter was like putty in Mr Waterman’s hands. I was smitten and ready to invest in the charity myself because I know it’s going to a good cause – Josh Waterman.
