... then it probably is a for-profit company. That's the argument of an anonymous complaint filed against the National Hot Rod Association this week stating the drag racing organization's activities mimic those organized by for-profit automobile entertainment companies.
Marcus S. Owens, former director of the exempt organizations division at the IRS and now a senior member in the Washington law firm Caplin & Drysdale, filed the behind on behalf of his client. Owens stated in a news release that the NHRA "operates like a commercial business by providing specific services to its members — whether in the form of prize money to winners or payments to race track operators."
In other words, the drag racing association acts like a shady version of NASCAR.
In addition, the association boasts an 80,000-member roster but members don't possess voting rights to elect an independent board of directors to approve compensation — and we're not just talking about chump change.
Currently, compensation is determined by a "personnel committee" who are likely to be selected and paid by NHRA officials. According to the release, two of the association's executives received compensation well beyond industry standards, based on NHRA's 2008 tax filings. Thomas Compton, president and board member, received $771,632; Dallas Gardner, chairman of the board, received $319,073 for one single hour of work per week.
One again, it's good to be the king.