Should Nonprofits Be Concerned about IRS Review of Executive Compensation?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 4. April 2014 08:55
Last week, the IRS published data on the number of information returns filed by tax-exempt organization in 2012 – 771,675 to be exact – and the number of those returns that were subjected to further examination (meaning the organization was contacted by the IRS for further information, clarification, or a full audit). The number of organizations involved in such an examination of their 2012 returns by the IRS in FY 2013 was 2,882. Most were Forms 990 and 990-EZ (2,744) and the remainder were Forms 990-PF, with a few other forms filed by political organizations and trusts. So, does that low percentage of scrutiny by the IRS mean that nonprofits should have no worries about executive compensation levels? [More]

Job Analysis and FLSA Executive Exemption Test

by Malak Kazan, CECP, CCP, CBP, GRP 25. March 2014 12:24
In March 2014, significant changes were proposed to the Fair Labor Standards Act and targeted for likely enactment in mid to late 2015; they are still pending a public notice and comment period. One of the changes that employers should follow is the possible elimination of the concurrent duties exemption of primary duties for the executive exemption test. [More]

Discussion of CEO Ratios Moves to Government and Nonprofits

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 4. March 2014 14:22
As the US slowly emerges from the recent recession, indications of increasing “income inequality” have become the focus of much discussion, and some action. [More]

Tracking Nonprofit Executive Salaries – Nursing Homes

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 11. February 2014 13:21

While economists and various pundits endlessly review each new government jobs report for impact on the recovery and growth of the US economy, one trend may have slipped by most observers – the difference in job growth among the for profit and nonprofit sectors.
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States Target Nonprofit Executive Pay

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 24. January 2014 08:11


Should nonprofit executives “volunteer” a part of their compensation (by receiving a discounted salary) because they work for a charitable organization? Alternatively, is a “high” salary important to attract the kind of talent needed to achieve the purpose of the nonprofit? The IRS says that pay must be reasonable and that salary data on comparable jobs in comparable organizations must be used to document that what is paid is appropriate. However, some states are moving to supplement that IRS scrutiny at the federal level with some limits on salaries for nonprofits at the state level.
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