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May founder and board be compensated?

Your Legal Questions Answered

May founder and board be compensated?

May the founder and board members of a nonprofit get paid a salary?

Yes.  It is not at all unusual for a founder to work for the organization and be compensated as an employee.  Other board members of charitable organizations are legally entitled to reasonable compensation, but in practice, except for private foundations, they are seldom paid.  To take compensation may cost them their protection under volunteer protection statutes at the federal or state level.  (See Ready Reference Page:  “Federal Law Protects Nonprofit Volunteers.”)

Friday, April 17, 2009

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