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.
PLUS – a helpful Compensation Review Checklist and Compensation Committee Charter
Nonprofits that employ executive staff should consider implementing the following practices and procedures:
We serve nonprofits of all types and sizes, offering creative legal advice grounded in over 20 years of specialized experience in nonprofit law.