Note: The following discussion is provided for informational purposes only and is not intended to serve as legal or tax advice. For specific information about compensation practices for exempt organizations, consult your attorney or tax advisor.
Charities should generally not compensate persons for service on the board of directors except to reimburse direct expenses of such service. ... Charities may pay reasonable compensation for services provided by officers and staff. In determining reasonable compensation, a charity may wish to rely on the rebuttable presumption test of section 4958 of the Internal Revenue Code and Treasury Regulation section of 53.4958-6.
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