Friday, 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.


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http://lawprofessors.typepad.com/nonprofit/2009/08/fair-and-reasonable-compensation.html

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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

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