New York social-service agency the Jewish Guild for the Blind, which has compensated its chief executive in the high six figures while closing facilities, freezing staff salaries, and laying off part-time workers, exemplifies the “nonprofit 1 percent,” The Village Voice asserts in an article examining the 96-year-old charity’s finances.

The guild, which receives much of its support from government contracts to provide or facilitate services for elderly, visually impaired people, increased the pay of the CEO, Alan Morse, from nearly $844,000 in 2008 to $1.5-million in 2009—during a period when the guild experienced a multimillion-dollar loss on its investments.

According to the weekly newspaper, several people who have worked for the guild characterize it as a “Medicaid cash cow.” Mr. Morse did not respond to interview requests and e-mailed questions sent through the charities public-relations department.