Understanding Intermediate Sanctions

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 3. October 2017 08:22
Today there are fewer employees charged with overseeing the nonprofit sector than there were a few years ago, but the IRS is increasing its use of data to target its investigations on the organizations that are the most likely to be in violation of the rules on paying excess compensation or benefits, leading to fines for those individuals responsible and even loss of tax-exempt status for the organization. [More]

Attracting Nonprofit Executives in a Tight Labor Market

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 12. September 2017 07:52
With the US unemployment rate at a little over 4%, considered "full employment" by some economists, there is increasing competition between the nonprofit and for-profit sectors for employees. The for-profit companies are also being much more aggressive about promoting the social aspect of employment as a recruiting technique. Employees seeking a mission, the traditional nonprofit talent pool for nonprofits, can now find jobs in for-profit companies that may offer what they want – some paid hours for volunteering, a company commitment to a cause, etc. [More]

Nonprofit Executive Compensation: How Much Is Too Much?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 27. July 2017 10:10
An investigative report about the Goodwill Industries affiliate in Omaha in a local paper started by looking at high compensation levels for the Omaha executives, but then continued to look at the payment of hourly rates for disabled workers less than the minimum wage. Then the issues of conflict of interest between board and staff, nepotism, and even the repackaging of foreign-made goods sold under “Made in America” labels were revealed. As community support waned, there was serious discussion of withdrawing the county-granted organizational exemption from property tax. [More]

How to Determine the Salary for a Nonprofit Executive

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 17. July 2017 08:07
All salary negotiations need to begin with research—both employer and employee need to collect meaningful data, not just anecdotes, about typical pay for genuinely comparable positions before beginning compensation discussions. This approach not only makes sense for employers and the executives—it is what the IRS and charity regulators require. [More]

Tips on Setting Nonprofit Executive Compensation in 2017

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 11. May 2017 10:20
There always seems to be plenty of interest in levels of nonprofit executive compensation – not only from federal and state government regulators, and even Congress on occasion, but also the media. The threat of financial penalties has heightened, but the loss of public support and credibility for charities is also a major factor. This is the time for tax-exempt organizations to increase the time and attention devoted to investigating, deliberating, documenting, and reporting executive compensation. [More]