Friday, April 4, 2008
Director compensation, especially compensation of directors of private foundations, will continue to be an issue for the Senate Finance Committee. The Principles of Good Governance issued last October by the Panel on the Nonprofit Sector suggested that board members should expect to serve without compensation. Not everyone agrees. William A. Schambra published "Compensating Foundation Directors?" in Philanthropy Magazine. His article takes a look at statistics on paid board service, sets out guidelines to determine reasonable compensation, and argues that compensated service may be appropriate for some foundations. The article appeared on Feb. 20, so it's not brand new, but it's worth a look. The Philanthropy Roundatable refused to sign on to the Principles, in part because of concerns about the one-size-fits-all nature of the Principles. "We're Not Signing It" written by The Philanthropy Roundtable president, Adam Meyerson, explains the reasons.