Realtor Dues At Work: $400K 'Volunteer' Salaries, Luxury Hotels And Golf Retreats

New details have emerged about lavish spending practices at the National Association of Realtors (NAR), where member dues funded executive perks ranging from private club memberships to pet-sitting services, according to a New York Times investigation.

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Former CEO Bob Goldberg’s 2017 contract spotlighted the organization’s spending culture. It featured a $75,000 club initiation allowance, first-class travel for himself and his wife, a $1,500 monthly car stipend and even coverage for dog-sitting services. Over five years, his compensation package grew from $1.2 million to $2.6 million.

The New York Times investigation revealed a generous spending pattern extending beyond top executives to the organization’s elected leadership. NAR’s president received over $400,000 in 2022, while the president-elect earned more than $265,000 – positions the organization describes as “volunteer” roles.

Corporate credit cards issued to officers funded luxury experiences at high-end venues, including the St. Regis Hotel in Dana Point and Montage Laguna Beach. Leaders charged expensive dinners, golf outings, spa treatments and even Broadway shows to the cards. 

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As per New York Times report, NAR continues to pay former executives substantial sums as consultants years after their departure. Tax records from the time source show Goldberg’s predecessor has been earning $250,000 annually as a “former officer/consultant” since 2019, while a former chief advocacy officer received over $300,000 in 2022.

Nonprofit law specialists have raised concerns about the practices. “It is highly unusual – I would even say virtually unheard-of – for volunteer leaders and officers to receive compensation at those levels,” Jeff Tenenbaum, a Washington, D.C.-based nonprofit lawyer, said to the Times.

The spending revelations come at a challenging time for NAR. According to the report, the organization recently agreed to a $418 million settlement in a commission-related lawsuit and faces mounting member dissatisfaction. Three Michigan agents filed a class-action lawsuit in August challenging NAR’s mandatory membership structure, with similar suits following in Pennsylvania and California.

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NAR spokesperson Mantill Williams defended the compensation of elected officials, describing the payments as travel reimbursements and “administrative stipends” to offset income lost while performing organizational duties. However, former elected officials told the Times they rarely filed for travel reimbursements, instead using NAR-provided credit cards that billed directly to the organization.

The organization’s financial practices face increased scrutiny as members question the value of their mandatory dues. Jen McDonald, a Reno broker and 24-year member, expressed disappointment in NAR’s recent performance. “I don’t think they defended us. I think they defended themselves,” she said.

With the first $200 million settlement payment due early next year, NAR is considering charging for previously free educational programs, potentially adding to members’ financial burden while questions about organizational spending persist.

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