Difference between revisions of "Honorarium"
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Traditionally there have been two types of ''speaking fees'' or honoraria paid to public figures. | Traditionally there have been two types of ''speaking fees'' or honoraria paid to public figures. | ||
*Motivational speakers, such as Tony Robbins or Earl Nightingale ususally at [[corporate]] events which are entirely for-profit; | *Motivational speakers, such as Tony Robbins or Earl Nightingale ususally at [[corporate]] events which are entirely for-profit; | ||
| − | *Honoraria to public figures and celebrities for charitable fundraisers as a top-billing headliner to draw in larger crowds and donations. These types of "honorarium", usually paid by the non-profit entity out of the cash-take at the fundraiser, must be considered by the reciepient as for-profit. In other words, a speaker who accepts honoraria at a charitable event is not donating his or her time, they are taking money intended by donors as a charitable contribution and using it for personal gain. This is considered by many as an abusive loophole in the United States tax code. | + | *Honoraria to public figures and celebrities for charitable fundraisers as a top-billing headliner to draw in larger crowds and donations. These types of "honorarium", usually paid by the non-profit entity out of the cash-take at the fundraiser, must be considered by the reciepient as for-profit income. In other words, a speaker who accepts honoraria at a charitable event is not donating his or her time, they are taking money intended by donors as a charitable contribution and using it for personal gain. This is considered by many as an abusive loophole in the United States tax code. |
==References== | ==References== | ||
Revision as of 22:44, June 25, 2016
Honorarium (plural honoraria) for public officials is a polite word for bribery. It is often referred to now as speaking fees. The United States Congress eliminated members accepting honoraria in 1989.[1] The Clinton family is reported to have accepted over $100,000,000 in speaking fees and honorarium since 2000.
Prior to 1989, members of Congress routinely scheduled daily breakfast meetings with 4 or 5 lobbyists for which they recieved an honorarium. Members anecdotally defined honorarium as "$1000 and a bran muffin" for a 45 minute sit-down meeting. Honorarium as a source of fundraising was eliminated in the Ethics Reform Act of 1989 (ERA).[2]
Traditionally there have been two types of speaking fees or honoraria paid to public figures.
- Motivational speakers, such as Tony Robbins or Earl Nightingale ususally at corporate events which are entirely for-profit;
- Honoraria to public figures and celebrities for charitable fundraisers as a top-billing headliner to draw in larger crowds and donations. These types of "honorarium", usually paid by the non-profit entity out of the cash-take at the fundraiser, must be considered by the reciepient as for-profit income. In other words, a speaker who accepts honoraria at a charitable event is not donating his or her time, they are taking money intended by donors as a charitable contribution and using it for personal gain. This is considered by many as an abusive loophole in the United States tax code.