Best Practices for Setting the Compensation of Nonprofit Executives
You also get a free Compensation Review Checklist and Compensation Committee Charter
LEARN HOW TO AVOID 200% EXCISE TAX
Executives from tax-exempt organizations can only be paid “reasonable compensation” for their services.
To avoid excise taxes, nonprofits should strongly consider increasing the time and attention they devote to investigating, deliberating, documenting, and reporting executive compensation.
IN THIS FREE DOWNLOAD, YOU’LL LEARN:
- The tax implications of excess benefits transactions
- Recommended practices and procedures to avoid excise taxes
PLUS – a helpful Compensation Review Checklist and Compensation Committee Charter
What are the best practices for setting the compensation of nonprofit executives?
Nonprofits that employ executive staff should consider implementing the following practices and procedures:
- Create a compensation committee
- Employ the rebuttable presumption safe harbor procedures
- Adopt a comprehensive conflict of interest policy
- Adopt a compensation policy
- Use appropriate comparability data
- Assess all components of executive compensation relative to comparable organizations
- Have Chief Executive Officers’ and Directors’ compensation approved by full board
Best Practices for Setting the Compensation of Nonprofit Executives: Get your free download
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We serve nonprofits of all types and sizes, offering creative legal advice grounded in over 20 years of specialized experience in nonprofit law.
Caritas Law Group exclusively represents tax-exempt, non-profit, and mission-based businesses, as well as major donors and companies engaged in cause marketing. With offices in Tempe, Arizona, our attorneys are licensed to practice in Arizona and Washington and represent clients with regard to federal tax matters nationwide.