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The team from Charity Navigator, the nation's largest independent charity evaluator and leading donor advocate, shares their thoughts on emerging nonprofit-sector issues and offers tips to better inform your intelligent giving decisions.

Monday, July 24, 2017

Charity Navigator Metric Mondays #19: Compensated Board


Happy Metric Monday from Charity Navigator! Today, we're looking at an Accountability metric: board compensation.

The IRS requires that organizations disclose payments made to a charity's governing body on its IRS Form 990. For employees who also serve on the board of directors, it is not unusual to see some amount of compensation - the simplest example is that of an executive director who also sits on the board - she is paid as an employee, and is listed as both an employee and a board member.

However, it is unusual for an organization to compensate board members solely for their participation on the board of directors, and not for work done for the organization. While not illegal, it is not a best practice for a nonprofit organization to compensate board members for board participation. Our analysts review an organization's 990 to determine if the organization compensates board members for board participation.

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