while at Sloan-Kettering in the early 1990s the IRS audited the entire organization and one of the issues was compensation given to President and CEO Paul Marks. IRS wanted to know how a non-profit organization could pay Marks in excess of $5-6M/yr, with a penthouse on 5th Ave. overlooking Central Park, a chauffeured limo and other financial perks. Sloan-Kettering's response was they had to be competitive with salaries being paid BigPharm executives. not sure how Marks salary issue was resolved but I doubt the IRS had any say in the matter. IRS did force a change on housing subsidies provided faculty, grad students, etc. - IRS considered housing subsidies a form of income and taxed accordingly. Most people's tax liability doubled or tripled overnight. They were eventually compensated.....