Nonprofit Board Members – To Pay or Not to Pay in 2018?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 8. May 2018 05:15
The vast majority of members of boards of directors in the nonprofit sector are not paid for their services. Board members typically serve on a part-time, voluntary basis, and many in the sector feel that they should not benefit personally from their service. While board members do fall under the IRS prohibition on “self-dealing,” there is an exception made for “payment of compensation ... for personal services,” which includes fees for board members. Payments, however, must be “reasonable and necessary to carry out the exempt purposes” and “not excessive.” So, compensation is permitted – but it cannot be “unreasonable” and “excessive.” [More]

Another Attempt at Mandatory Form 990 Electronic Filing

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 23. April 2018 10:32
The U.S. House Ways and Means Committee has released a discussion draft of a bipartisan bill that includes mandatory Form 990 e-filing. Sponsored by Oversight Subcommittee Chairman Lynn Jenkins (R-KS) and Ranking Member John Lewis (D-GA), this is part of a larger IRS reform effort. [More]

Are You FLSA Compliant in Your State?

by Lyle Leritz, Ph.D. 30. March 2018 10:13
In 2016, the Department of Labor published its final rule regarding changes to the Fair Labor Standards Act (FLSA) which dictates federal overtime wage laws. Of note was a significant change to the minimum salary threshold required to classify an employee as exempt from overtime laws. However, a United States District judge imposed an injunction that stopped the rule's enforcement from going into effect, and, as of 2018, there do not appear to be any efforts to revive the proposed changes. [More]

U.S. Salary Increase Budgets Expected to Rise

by Linda Cox 13. February 2018 08:37
Given recent economic trends, the reasons to justify raising U.S. salary increase budgets over 3% in 2019 are increasing. [More]

Tax Reform Hits Compensation of Nonprofit Executives in 2018

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 24. January 2018 12:21
Effective January 1, 2018, the Tax Cuts and Jobs Act, otherwise known as the Tax Reform bill, imposes a new 21% excise tax on nonprofits that pay compensation of $1 million or more to any of their five highest-paid employees. There will also be a tax on certain employee benefits. [More]

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