Wednesday, December 21, 2005

Salary hurts Goodwill, but it's an anomaly

Salary hurts Goodwill, but it's an anomaly: "Salary hurts Goodwill, but it's an anomaly
Nonprofits come in a jumble of shapes, but this compensation package is an anomaly
Wednesday, December 21, 2005

T he words 'good will' are sprinkled around as thickly as snowflakes this time of year, but in the accounting world, the term has a fairly precise definition. As Webster's relays, goodwill (often used as a single word) is an intangible asset, representing the value that patronage and reputation add to a business.

If anything diminishes this intangible asset, of course, the repercussions are tangible, indeed, which is why accountants bother to define it. And if good will is crucial to profit-making firms, many nonprofits simply melt without it. That's why we were glad to see Goodwill Industries of the Columbia Willamette move swiftly to counteract the damage done by its president's total compensation package of $831,508."

No comments: