Monday, April 07, 2008

KRIPALU: Not-For-Whose-Profit?

Milking A Sacred Cash Cow.

If you are of the belief (as I am after reviewing the financial shenanigans at WAMC Northeast Public Radio and at The Mount) that one of the easiest ways nowadays to become a millionaire (or at least live like one) is to run a tax-exempt organization, then read on:

The Berkshire Eagle reported Sunday that Kripalu Center for Yoga and Health (officially known as Kripalu Yoga Fellowship) has received its first PILOT "tax" bill -- for $61,222 -- from the town of Stockbridge.

Photo: Kripalu Center for Yoga and Health in Stockbridge, Mass.

The yoga retreat cum resort spa (2006 gross revenues $23.3 million) has its headquarters in Stockbridge and PILOT is meant as a 'payment in lieu of taxes'.

"But", according to The Eagle, "as yet, it is unclear whether the nonprofit organization will be liable for the real estate taxes" because the organization is presently classified as 'tax-exempt' by IRS.

It might be helpful to Stockbridge's case to review whether Kripalu is indeed 'not-for-profit' (and thus deserved of tax-exempt status), or just another money-making enterprise masquerading as a 501c3 for the many local, state and federal benefits such status confers.

Being tax-exempt gives Kripalu a definite edge over its commercial resort spa competitors like Canyon Ranch which, as a for-profit entity, has federal and state tax obligations, and is required, for example, to pay real estate and personal property taxes to the town of Lenox.

Kripalu's CEO, Patton Garrett Sarley, known also by his Sanskrit name, Dinabandhu, which means 'friend of the poor and the helpless', sure ought to be.

Photos:
Patton Garrett Sarley (aka Dinabandhu), Kripalu's CEO;
Mary Sarley (aka Ila), Kripalu's president.

That's because for 2006, Mr. Sarley was paid nearly $232,000, according to the organization's latest available IRS Form 990.
SEE: PDF pgs. 33, 34, & 35.

Mr. Sarley's wife, Mary, is known around the retreat as Ila.

She is president of the organization, the same one for which her husband is CEO.

Kripalu paid her more than $186,000, thus making the couple's total 2006 compensation from the yoga center just over $418,000.

This is nearly eleven times the median household income for Berkshire County (MHI here is $39,047).

Richard Faulds (also known as Shobhan) is chairman of the board of trustees and is Kripalu's legal counsel.

His pay in 2006 surpassed $110,000.

Richard Faulds (aka Shobhan), Kripalu's board chairman and legal counsel.

While Mr. and Mrs. Sarley each averaged 40 hours per week in 2006, Kripalu reported to IRS that Mr. Faulds worked an average of just one hour per week.

It does not appear to be a typo, either.

At that rate, Mr. Faulds was making $2,200 per hour.
SEE: PDF pgs. 33, 34, & 35.

This isn't the first time that Kripalu, and the company's practices have been the object of public scrutiny.

According to The Boston Globe, "Dinabandhu Garrett Sarley and his wife, Ila Sarley, were among the original followers of Kripalu founder Amrit Desai, who left in the wake of a scandal in 1995. Indeed, Dinabandhu Sarley held chief operating officer responsibilities at Kripalu when the ashram's problems emerged. (Desai, who was married, encouraged his followers to practice celibacy. He later was revealed to have had sexual relationships with several of his female adherents and was forced to leave the community. The events nearly destroyed Kripalu, prompting its evolution from a devotion-based ashram to a more secular educational institution.)"

By the way, Kripalu reported zero taxable fringe benefits paid to the above executives in 2006.

Credit for this article goes to "Ombudsman" whose timely suggestion was the impetus for its publication.

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33 Comments:

Anonymous Anonymous said...

I encourage everyone to file a complaint with the IRS. Kripalu is clearly abusing the charitable exemption.

http://www.irs.gov/pub/irs-pdf/f13909.pdf

Tuesday, May 27, 2008 10:49:00 AM  
Anonymous Anonymous said...

Uh... WOW?

This is clearly not a non-profit that serves the greater community. Thieves, all of them, masquerading as spiritual people.

Vile, loathsome, disgusting people. All of them.

Friday, July 18, 2008 8:43:00 AM  
Blogger Blissfully Teal said...

While I can't give an educated commentary on the financial information in your post without doing research on your allegations, I can offer my personal experience of the Kripalu Center, it's programs, staff, and even the 3 individuals you mention.

I attended yoga teacher training for one months at the Center in 2007. I was given a generous need based scholarship which made it possible for me to realize this life long dream. The program exceed my expectations (which were very high) in great measures. Everyone I encountered there, including Dinabandu and Shoban, were extremely intelligent,and giving people.

The Center not only provides high quality training, holistic retreats, etc. it gives many grants and scholarships to help new people develop skills in holistic health fields, who in turn go out and give back to their communities many fold.

They also give scholarships to people, like myself, to teach yoga to under-served populations who need these services the most, and could never afford them otherwise.

I would ask your readers, and commentators, to give these things consideration before determining that Kripalu is full of "vile, loathsome people", and "thieves."

Monday, August 11, 2008 11:44:00 AM  
Blogger adunkadunka said...

(1) have you checked lately to see what the definition is for a nonprofit or 501c3? It essentially means an organization chartered exclusively for educational purposes. I suggest checking out the Kripalu Web site or better yet participating in a program. Any reasonable person will discover quickly that there is little question of whether Kripalu fits this definition.

(2). Have you done any research into executive compensation at comparable nonprofits? Even in the nonprofit world, executives need to me paid at competitive rates. A minimal amount of research will show that compensation for these people is slightly under the industry average. The Sarleys are two of the most respected and admired executives in their field. Thy could easily earn double or triple their current salaries by working at a for-profit institution. Consider also that prior to the departure of Amrit Desai, they worked for about 10 years on a stipend of under $200/month.

I challenge the author to meet with the Sarleys and spend a day or better yet a weekend at Kripalu and report back. A closer look might reveal an alternative perspective.

Friday, August 15, 2008 11:28:00 PM  
Anonymous Anonymous said...

I work at Kripalu. The fact that I can barely make ends meet with my meager salary and these people are making almost half a million dollars a year all the while getting the front parking spots and probably not paying for their meals, makes me sick to my stomach. I've watched them lay off people, really good people, to save money when they could be saving several families by taking pay cuts. BUT don't let the fact that the Sarley's, and several other top execs at Kripalu, are making outrageous salaries taint your vision of what Kripalu does for the community and those that go there. It's programs are indeed educational and the good that Kripalu programs themselves spreads has nothing to do with the organizations blatant disregard for kosherness when it comes to getting a paycheck.

Monday, December 08, 2008 6:28:00 PM  
Blogger randal.williams said...

The blog post by Mr. Heller is informative but falls short on at least a few points:

1. the people mentioned actually earn less than comparable non-profit executives; so the point of Mr. Heller seems to contradict the reality on the ground.

2. Mr. Heller is a lawyer who is paid by a for-profit company that sees the non-profit Kripalu as a competitor; Mr. Heller has a financial stake in generating his critical comments that he fails to note. 'Whose profit is involved here?'

3. I know a little about the people mentioned - Ila, Dinabandhu and Shobhan, I've been familiar with and worked with them for more than a decade, and my experience is that their level of skill, dedication and pioneering labor is worth significantly much more than what they currently earn. If these folks chose to work and engage at a for profit I'm sure that they would be making significantly more income.

I think the quality of life issue is worth adding to this discourse - for many years the executives mentioned by Mr. Heller were actually volunteers - that means unpaid - while pioneering the educational value of a yogic lifestyle. It's been a long road of several decades and these talented individuals in my opinion have worked with dignity, grace and contributed significantly to the betterment of those around them and those visiting the Kripalu Center.

Friday, January 09, 2009 1:25:00 PM  
Blogger G.M.Heller said...

Editor's Note:
Randal.Williams should at least make an attempt to get his facts straight.
Blog Editor G.M.Heller does not have a law degree, has never been compensated by any company competing with Kripalu, and is not connected in any way with Kripalu or any of its competitors.

Monday, January 12, 2009 3:24:00 AM  
Anonymous Anonymous said...

I believe that Randal.williams is confusing you (GM Heller) with David Heller, legal counsel for Canyon Ranch.

David Heller(on behalf of Canyon Ranch) has openly questioned Kripalu's not-for-profit status in a letter read to the Stockbridge Selectmen in an open meeting.

Canyon Ranch's interest in Kripalu as a competitor was heightened when Kripalu hired one of their key managers and began introducing Canyon Ranch programming like Kayaking(not-yoga related) and experts like Mark Hyman into its programs. Kripalu also began marketing itself as a "poor person's" Canyon Ranch at the same time.

Tuesday, January 13, 2009 10:59:00 PM  
Anonymous Anonymous said...

Canyon Ranch lawyer is Phil Heller. They are laying off people too.

Saturday, January 17, 2009 8:16:00 PM  
Anonymous Anonymous said...

Dear Mr. Heller,

My name is Richard Faulds. At Kripalu, I am known by the yoga name I was given while a volunteer resident staff member in the 1980s, Shobhan. Just want you to know that I work more than 40 hours per week for Kripalu. My $110,000 income listed on the tax return is for my full-time position as General Counsel, a job I've been in since 1989. It also includes compensation for teaching 5-6 weekend programs per year above and beyond my normal job duties. I am not paid for serving as Board Chair. The Board only meets three times per year, thus the low number of hours listed on our tax returns. Please update this page, and any other web postings you have made regarding me. Thank you.


_____________________________
Richard Faulds
Board Chair and General Counsel
Kripalu Center for Yoga & Health

Wednesday, February 04, 2009 9:58:00 AM  
Anonymous Abby Turner said...

Kripalu is great. It does important and valuable work.

It is not perfect. People idealize Kripalu and are disappointed when it does not live up to those inflated ideals.

It has fabulous programming. It provides generous scholarships.

The regular staff are extraordinary, generous, and deeply thoughtful. And they are poorly paid.

Having worked for many non-profits, I know that this is normal in the non-profit world. Objectionable? Yes. But I made the decision to work in non-profits knowing that I would be underpaid, and so I could not blame the institution.

Senior staff is very well-paid when compared to other staff members. But not when compared to senior staff outside of the non-profit world.

Buddhism teaches that suffering is the result of refusing to accept what is.

Thursday, February 05, 2009 9:37:00 AM  
Blogger G.M.Heller said...

Abby Turner said:
"Senior staff is very well-paid when compared to other staff members. But not when compared to senior staff outside of the non-profit world."

'Abby Turner', do you really buy into this fantasy notion that Kripalu's senior staff could earn higher pay in the 'for-profit' world?
Are you aware of the economic recession?
Are you aware of the current state of the executive job market?
Are you aware that thousands of highly qualified corporate execs even more highly paid than those at Kripalu have been laid-off and are actively looking for employment?
No doubt a few of these would be happy to run an outfit like Kripalu for half of what Kripalu's senior staff are currently being paid.
Do you doubt me?
Try this: Run an ad seeking executive help for a CEO position at half the present salary being paid Kripalu's CEO and watch how many hundreds line up for the position.
Oh, and be sure to mention in the ad that the available position also includes being able to bring the wife along in the position of salaried President.

Thursday, February 05, 2009 2:25:00 PM  
Anonymous Abby Turner said...

Are you suggesting that the economic crisis would justify a free for all where jobs should go to the lowest bidder?

Many non-profits have well-paid senior staff. So what?

Dinabandhu and Ila don't walk on water or live lives of poverty. They are well-paid executives, not saints or a monks.

The important thing about Kripalu is that Kripalu provides excellent teaching and a place for growth.

Buddhism teaches that suffering is the result of refusing to accept what is.

Best wishes,

Abby Turner

Thursday, February 05, 2009 5:11:00 PM  
Blogger randal.williams said...

Mr. Heller has posted the actual images of the Kripalu leadership yet for himself has posted an image of Dan Rather - Is there a reason for wearing this mask while taking shots at hard working people and attempting to 'take away' the good will of others towards both these employees and the non-profit they work for?

And I do not believe it is fair to compare the wages of highly talented and legally responsible executive positions to another position that has a lower skill level and demands - this is simply ridiculous.

Have any of these critics ever generated or run a large organization that accommodates and serves 25, 000 people a year? Do you have first hand experience and understanding in what is involved in maintaining a 165, 000 square foot building? Serve tens of thousands of meals a year? Employ 400 people? Or sustain relationships with Harvard research teams? This is just some of the work that these executives are paid to execute - and it is definitely NOT a common skill level.

Kripalu the non-profit has trained close to 5,000 teaching professionals who form a network of caring human beings that contirbute to their respective families, communities and provides stress management and wellness support all over the world.

Kripalu is a large organization and in deed requires steady and devoted leadership. We are blessed to have these folks on board - and without their unique or at least rare talent and work ethic the organization would not be as well positioned to serve as it is today.

Thursday, February 05, 2009 7:01:00 PM  
Blogger G.M.Heller said...

Richard Faulds said:
"Just want you to know that I work more than 40 hours per week for Kripalu. My $110,000 income listed on the tax return is for my full-time position as General Counsel, a job I've been in since 1989. It also includes compensation for teaching 5-6 weekend programs per year above and beyond my normal job duties. I am not paid for serving as Board Chair."

Richard Faulds, in your role as general counsel to tax-exempt Kripalu, you should certainly be aware that IRS defines 'key employee' as "any person having responsibilities, powers, or influence similar to those of officers, directors or trustees", and that "The term includes the chief management and administrative officials of an organization."
SEE: PDF pg. 40 at
http://www.irs.gov/pub/irs-pdf/i990-ez.pdf
That definition appears to apply to you in your dual positions as Kripalu's general counsel and its board chairman.
You claim here to work "more than 40 hours per week" as general counsel.
That said, you should be aware that Kripalu is required to report to IRS the names of each "current officer, director, trustee or key employee", and that "a numerical estimate of the average hours per week devoted to the position is required for a complete answer".
Further, tax-exempt non-profits are required to report fully this information on IRS Form 990 in 'Section V-A'.
SEE: IRS Publication, "Instructions for Form 990" at
http://www.irs.gov/pub/irs-pdf/i990-ez.pdf
For FY2006, Kripalu's IRS Form 990 claims you worked an average of only ONE hour per week in your various roles as "Trustee Chairman/Legal Counsel".
SEE: PDF pg. 33 at
http://www.guidestar.org/FinDocuments/2006/231/718/2006-231718197-036eb8d3-9.pdf
If what you are now claiming here is to be believed, that since 1989 you have worked full-time more than 40 hours each week as general counsel, then either Kripalu filed with IRS a return containing inaccurate information (a return signed under oath by Patton Garrett Sarley, Kripalu's CEO), or Kripalu needs to file ASAP an amended return with IRS correcting the faulty data earlier submitted.
(It begs the question just how much other faulty information is being reported by Kripalu in its annual IRS returns.)
As general counsel, maybe you ought to make it your job in the future to double-check that Kripalu files accurate returns with IRS.
That would certainly be more productive than coming on here trying to correct a record that senior executives within Kripalu have themselves made questionable.

Thursday, February 05, 2009 7:16:00 PM  
Blogger randal.williams said...

Mr. Heller - I have to imagine that you are trying to be helpful in your online commentary of public records regarding Kripalu - but as a fellow citizen I'll reflect back to you once more that I feel your energy is misdirected in picking on entities such as Kripalu, it's employees, President Obama and WAMC - the way I see it these are people and organizations doing the best they can with the means at hand to apply themselves and improve the quality of life for those around them and for people they will never even meet - leaving the world a better place for current and future generations.

Obviously you see these folks differently and I'd welcome such a discussion at anytime, as I am sure that they would also - but your argument lacks substance and seems bitter and having nothing related to the reality on the ground.

Have you ever been to Kripalu? Or participated in a workshop? Or actually met any of these executives or witnessed them at work? If not for yourself have you ever met anyone who has worked at Kripalu or experienced a retreat or training? If not then please consider that your comments are completely out of context and challenged to find the traction of any real relevance or meaning.

Friday, February 06, 2009 10:14:00 PM  
Anonymous Anonymous said...

Kripalu thinks nothing of using volunteers. They pay for the privilege of working fulltime there, and get back as little as possible, if anything. It's sad to read how much the top people earn.

Monday, January 04, 2010 11:53:00 AM  
Anonymous Anonymous said...

I just came back from Kripalu where I attended a workshop with Richard Faulds. I'll admit I know little about tax laws and whether Kripalu filed the correct forms is beyond me. I would like to address the bitterness that some people have toward the institution.

In regards to volunteers: Those people are willing to dedicate their time in exchange for free room and board and access to the many programs Kripalu has to offer. No volunteer should ever be bitter at the success of any of the people who are being paid for what they do. If you want to make money in life, get a job that does so and then you can buy the things you enjoy. If you want to volunteer because you can afford the things you want, be grateful that someone is willing to give you something for your time. As a volunteer, you accept whatever you agreed to, no one makes you volunteer and you have the freedom to stop volunteering any time.

Having just come back from Kripalu for the first time, I was amazed at the magnitude of what happens there. In my opinion, the money that some of the top people are making there may be well deserved. I was in awe of what it must take to run that center. It was impressive on many levels. They offer many types of programs and services. Just because the center is a non-profit, does not mean that people should not be adequately compensated for their work. Perhaps the pay is excessive, perhaps not. All i know is that EVERYONE i've ever met who have visited there have had a positive experience that had exceeded their expectations.

Having just studied with Richard Faulds for the first time, I can say that it seems highly unlikely that he is the swindler you make him out to be. He gave the participants of his workshop more than they could have asked for. I believe he has been associated with kripalu for more than 20 years and he completely embodies the essence of the institution. He and his wife were extremely dedicated to their students created an unparalleled experience. I did only just meet the guy but I can tell he has more positive qualities than most of the people responding to this blog.

My impression of kripalu, is that it provides people with exactly what they are seeking. It is a place of healing on many levels. It helps people become better people. If that means some guy and his wife make half a million dollars a year, what's wrong with that? Many CEO's make so much more than that and cause harm to millions of people and the environment. I don't think that Kripalu should be breaking the law and I sincerely hope that they are not, but this blog seems more like a witch hunt. Think of all the excessive loopholes that for-profit companies take advantage of. Is Kripalu really doing any more harm than a company like BP?

Tuesday, July 06, 2010 2:56:00 AM  
Blogger sexy sadie said...

self realization, altenative names, getting 'devotees' to 'serve' and learn how to navigate the path to inner peace sounds like the 70's are alive and well in kripalu... 'buddhism teaches us that suffering is the result of refusing to accept what is...' here's another ism 'there is a sucka born every day...' so come to kripalu and let us help you with your suffering, let us teach you the way to accept your fate... so riddle me this... does it start at the bottom or does it start at the top..? cha ching... it's all so me me meeee...

Friday, January 21, 2011 12:21:00 PM  
Blogger tsm said...

My name is Thalia Marcoux I have been going to kripalu since 1989.

Why shouldn't Kripalu be tax exempt?

The law says it can. It is a proven, established educational facility, with increasingly sought after programs which have been proven over and over again to be highly successful.

The small drivel looking for fault in high paid salaries at kripalu is almost not worth it's own effort, except for the meanness of it's intent. That meanness is everywhere in right wing efforts today.

Do, try and take a breath, soften to yourself and others. . . get a massage, go to a yoga class. . . turn off your tv set and forget about right wing jargon for now.

You'll feel a lot better, and that is what I personally want for you.

Monday, February 21, 2011 11:58:00 AM  
Blogger G.M.Heller said...

@TSM, aka Thalia Marcoux.
Time to get real, Ms. Marcoux.
The United States government is technically bankrupt.
This nation is in hock to the Chinese government for about a Trillion (With a T) dollars plus interest.
Why should U.S. taxpayers have to subsidize the high salaries paid to KRIPALU executives, or exec salaries at any of the nation's so-called 'not-for-profit' organizations?
Is there any doubt that without 'non-profit' status, KRIPALU -- and thousands of not-for-profits like it -- could easily survive as 'for-profit' entities?
In Lenox, somehow -- somehow --, KRIPALU's competitor, Canyon Ranch, survives as a for-profit business despite having to compete with KRIPALU which gets subsidized by taxpayers.

Monday, February 21, 2011 1:41:00 PM  
Blogger randal.williams said...

This comment has been removed by the author.

Monday, February 21, 2011 2:32:00 PM  
Blogger G.M.Heller said...

@randall.williams,
Mr. Williams, you still fail to answer the central question:
Why should American taxpayers be forced to subsidize KRIPALU's largess (and no doubt your own salary at KRIPALU)?

Monday, February 21, 2011 2:46:00 PM  
Blogger randal.williams said...

Mr. Heller,

I'm with you in examining taxes. The country needs a good examination given it's current deficit and debt load. There are plenty of ways to improve efficiencies I am sure - I hope that you make your mark in this area for all of our benefit.

But I am still confused as to why you would seek to single out an educational non-profit such as Kripalu. Why not refer to Harvard or the American Lung Association?

What is your issue with Kripalu? Why does it stand out for you?

And for the record I am not a salaried employee at Kripalu.

Tuesday, February 22, 2011 6:51:00 PM  
Blogger randal.williams said...

And as far as I know - all of the 400 staff at Kripalu Center are tax payers - just like at any other non-profit educational organization.

As far as I know Mr. Heller you have no issue with this - any non-profit that generates tax payers - tax payers that support things like www.DARPA.mil which created the internet that allow you to blog and broadcast your opinion?

Can you be more specific as to what it is about Kripalu that distinguishes it from any other non-profit educational organization recognized by the federal IRS as a tax exempt organization?

Tuesday, February 22, 2011 8:34:00 PM  
Blogger G.M.Heller said...

@ Randal Williams:
Thank you for your comments.
You fail to address the underlying questions:
Why should American taxpayers be forced to subsidize ANY aspect of KRIPALU no matter how noble the goals and aspirations of the organization?
Why should KRIPALU be getting tax breaks whereas its competitors in Berkshire County (e.g.: Canyon Ranch) get no such special treatment?

Wednesday, February 23, 2011 3:45:00 AM  
Blogger kevink023 said...

From May through July of 2009 I was a volunteer at the Kripalu Center in Lenox, Massachusetts. Volunteers accepted to this program are asked to commit to a full term of four months and during this time maintain residence at the center, room and board provided...

http://kripaluvolunteer.wordpress.com

Monday, April 25, 2011 12:14:00 PM  
Blogger randal.williams said...

First - I don't know that 'competitors' exist in the non-profit world... I do not know of anyone else doing the work that Kripalu does as outlined in it's missions statement...

And second - canyon ranch recently benefited from two major infrastructure improvements - public tax funded - (1) a major road renovation due to the recent american reinvestment act - and (2) the expanded pittsfield airport where many of their clients arrive and depart by private jet - these public taxes were spent to support the infrastructure that increases the flow of income into the ranch - which is a private - closed book - facility and organization - so I'm not sure that your focus which claims to be targeting taxation - is in the right place by criticizing Kripalu...

maybe in an ideal world - the tax issue is fully distilled - but not in the current environment...

Monday, April 25, 2011 12:33:00 PM  
Blogger malinamartis said...

That was really helpful post. Kripalu Yoga can also initiate a gradual process of physical healing, and psychological growth of human body..
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Tuesday, October 11, 2011 3:12:00 AM  
Anonymous Eyes Wide Open said...

It would appear that G. M. Heller has an ax to grind. His comments are based upon clear political objectives which I discount entirely. It appears that he wishes to destroy what is good and loving in the world. For that, I am sorry for him. Perhaps he should attend Kripalu and learn that what is taught there is multiplied a hundred fold by its students out in the world.

Monday, December 12, 2011 3:09:00 PM  
Anonymous Anonymous said...

Bottom line is - if any of these well-paid people observed the Patanjali Sutras with sincerity they would certainly be distancing themselves from monetary compensation favoring the path to Samadhi. One might surmise from their titles, apparent experience and practice, that they should be living a lives of austere contentment. I'm not saying that they should be spinning their own yarn like Gandhi, but c'mon 110K annual salary? I have a general question - just curious... is there an ATM machine on the grounds of Kripalu?

Sunday, April 01, 2012 9:12:00 PM  
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