Can a nonprofit pay for cost of the lunch at a Board meeting with organizational funds?
Yes. A nonprofit may pay for Board meeting breakfasts, lunches, or dinners. A reasonable meal should be treated as an incidental benefit and should not be considered compensation or an excess benefit.
Some smaller organizations nevertheless ask the Board to reimburse them for the cost of the meal. It is a way to save money and get some modest additional financial support from the directors for program.
Tuesday, February 27, 2007