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August 14, 2009
Fair and Reasonable Compensation
Tax regulations require that the compensation paid to nonprofit executives be "fair and reasonable." A board is expected to make that determination based on comparables - what a similar executive would earn for a similar job. For many nonprofits, getting the information necessary to support a decision on compensation can be difficult. GuideStar just announced a new service - CEO Compensation Checkpoint - that "evaluates a nonprofit CEO's compensation against a group of peer organizations" and then prepares a report for use by the board. This blog is not endorsing GuideStar's service or product, and there is a fee for the service, but it is useful to know that the service exists. It is also a reminder that a lot of IRS regulations, while adopted with the worthy goal of promoting "good" behavior by nonprofits, will cause many nonprofits to incur extra expenses.
August 14, 2009 in In the News | Permalink
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Comments
Thank you or sharing information. I think there should be compensation on "Fair and Reasonable". I have no more knowledge regarding this. I am just putting my point what i think. I will be really thankful to you if you tell me more regarding this like what decision they take at last and why.
Posted by: Orlando Hotels | Jan 21, 2010 4:39:58 AM
Is there a law, which guides a litigant when determining what would be the appropriate amount to sue for and/or a negotiable settlement requirements to insert during negotiation?
Posted by: Denise Smith | Jun 21, 2012 9:40:04 AM
