What Your Nonprofit Board Should Know About Pay Equity Consistency requires putting an executive compensation policy in writing to use as a basis for establishing equitable executive compensation practices It’s best to begin your policy wording with a general statement on how your pay rates relate to similar types of nonprofits
Nonprofit Executive Compensation: 3 IRS Requirements - KLR If the IRS deems that compensation at your nonprofit is excessive but you have met the following requirements, it will be hard for them to penalize your organization 1 ) Approval in Advance by an Authorized Body (or Board of Directors)
5 Common Questions About Nonprofit CEO Compensation - CapinCrouse We observed several organizations provide increases and spot bonuses to non-executive employees and freeze those increases for executives If your organization is financially healthy and consistent increases or bonuses across the organization are feasible, the board or committee should weigh the options
Board Cafe: The Boards Role in Personnel - CompassPoint The Board's Role in Personnel By Jan Masaoka A frequently sticky issue for nonprofits is the role of the board of directors in personnel and human resource administration Should the board approve all salaries, or just the executive director's? If a staff member has a grievance, should it come to the board?
Executive Compensation – The Legal Issues - Nonprofit Law Blog Determining the appropriate amount of compensation to pay an executive is one of the most important decisions a board is asked to make Board members must balance budgetary concerns with the need to find a qualified candidate
How Boards Can Confidently Assess Executive Pay Nonprofit boards are generally responsible for setting executive compensation But fulfilling that responsibility has its share of challenges, including balancing legal requirements, financial constraints, and public perceptions
Compensation Committees: What Board of Directors Should Know - board-room In the US, for instance, a nonprofit must meet three requirements when establishing executive compensation to preserve its tax-exempt status These requirements are: Compensation must be determined by a body within the corporation appointed especially to that end (the compensation committee)
Executive Directors! Here’s how to ask your board for a raise. Asking the board for that $5,000 or $10,000 to go to her personally instead of the nonprofit’s programs felt almost…selfish? And yet, when she was being honest with herself, she knew she wanted it