Profit-sharing at a nonprofit? Fair’s bonus payouts, $25k signing bonus raise red flags

“Profit sharing” at a nonprofit.

A $25,000 signing bonus.

A salary higher than the 20-year veteran a new director replaced.

Internal documents and interviews obtained by Red Tape Florida reveal how the North Florida Fair is rewarding its leaders — and why officials are demanding answers.

After Red Tape Florida first reported about the now-infamous $28,000 retirement watch, fallout was swift, with local and state officials demanding an investigation.

Now, a new revelation: The incoming executive director of the Fair — who has defended the board’s decision to buy the luxury watch for her predecessor — herself received a $25,000 cash signing bonus upon being hired.

In a Dec. 5, 2024, offer letter from then-board Chair Rachel S. Pienta – who resigned in protest after the watch controversy — new fair manager Miranda Muir was offered a contract that included:

  • $125,00 annual salary
  • Health insurance
  • 401k with 3 percent employer match
  • A one-time $25,000 signing bonus

Minutes from the September 12, 2024, meeting reveal a discussion about the offer to Muir, who had been attending meetings since 2023 as the heir apparent to the director’s job and seemed a lock for the position.

While Harvey had not yet set a retirement date, the board moved toward making an offer to Muir. Initially, a base salary of $100,000 was discussed – below the long-time outgoing manager Harvey’s salary of $112,000. But board member Marcus Boston said he “went on the internet” and found a higher range

A committee was formed and there was also a mention of one-time moving expenses, but no mention of any sort of bonus. In the end, Muir received a base salary more than 10 percent higher than Harvey — and the $25,000 bonus.

Board member Steve Hurm, contacted this week by Red Tape Florida, said the board never discussed a signing bonus. “That information was never brought to me and if it had been I would have objected,” said Hurm.

Pienta declined to comment on the Muir offer saying in a statement: “I want to reiterate that it has been an honor and a privilege to serve on the North Florida Fair board over the years, including as Board President/Chair since 2024. I have stepped down from that position and will continue to focus on and strengthen our local 4-H programming and participation in the Fair moving forward.”

“Profit sharing”

Meanwhile, the bonus money has been flowing at the fair for years and has been referred to at meetings and in minutes as “profit-sharing.”

When Hurm first heard that term he was alarmed.

“When a board member mentioned ‘profit-sharing,’ Hurm recalled, “I interrupted and said it was a nonsensical term – we’re a non-profit.”

By law, nonprofits don’t have “profits” to share. The IRS flatly prohibits it: no part of a charity’s earnings may inure to the benefit of insiders. Reasonable salaries? Sure. Profit sharing? That’s the language of Wall Street, not a 501(c)(3).

Watchdog groups warn boards constantly about even appearing to funnel surpluses to executives. Florida law is equally clear: compensation must be reasonable, but distributing income to officers is off-limits. And yet, here is a nonprofit agricultural fair association putting “profit sharing” in black and white — not whispered in a back room, but recorded as if it were standard practice.

It’s not just sloppy language. It’s a governance red flag that makes the organization look less like a community charity and more like a for-profit corporation cosplaying as one.

In 2023, Harvey received $27,500 in bonus money for strong performance of the annual fair. Minutes for 2024 aren’t available, but the 2025 proposed budget shows that total staff bonuses in 2024 were $74,000.

It is not clear if Harvey received a bonus this year for 2024 fair performance, but the 2025 total budget for bonuses rose to $100,000.

In the North Florida Fair’s most recent publicly available form 990 – from fiscal year 2023 – Harvey had a reported $178,000 in total compensation. Of that, according to schedule J on the form, $103,715 was base salary, $63,500 was bonuses, $7,619 was “other compensation” and $3,726 was retirement and deferred compensation.

Also that year, two board members of the non-profit were paid — $2,809 to George Kolias and $571 to Carole Abbott. The watch controversy drew withering criticism from Leon County Commissioners Bill Proctor, Christian Caban and Brian Welch at Wednesday’s meeting, while Commissioner Nick Maddox did not appear as concerned. Hanging over the issue is $30 million in proposed Blueprint funding to enhance the fairgrounds. That funding was frozen at a recent Blueprint meeting by a 9-3 vote with Tallahassee Mayor John Dailey, City Commissioner Dianne Williams-Cox and Maddox voting against.

Also a factor is Leon County’s lease with the Fair.

But before the retirement watch controversy broke, it was fair board members who thought they had the upper hand in negotiations with Leon County over the fair’s $1 lease.

Board member Lee Vause Jr., who remains on the board after supporting the retirement gift, was quoted in the minutes responding to a conversation about the Fair’s lease with Leon County by saying: “We don’t have to negotiate lease with County. They want something, not the Fair. Fair is in better position, not County. Wait for County to get in touch with the Fair.”


September 17, 2025
Red Tape Florida