Can Nonprofit Board Members be Paid?
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- Опубликовано: 4 авг 2024
- Can nonprofit board members be paid to serve on the board of your nonprofit organization? In this video, I break down the answer to this question in this video and offer a specific answer for new and small nonprofits because the answer may differ.
*NOTE: Some states do not allow board members to be paid.
In this video I break down why some nonprofits want board members to be paid, and how to think about it if you're just starting out.
I also offer explanations of the difference between board members and staff members and how to distinguish the two, depending on the phase of your organization's development. I also talk about strategies to get paid as a nonprofit founder.
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Thank you for sharing this!
I'm a new subscriber and getting the process started and i just wanna thank you for this wealth of information.
Thank you for watching! Did you get the checklist?
Thank you! This is helpful! :)
Thanks for watching 😊
This was very helpful. Thank you
Thank you for watching!
Great information. Amazing video
Thank you for watching!
As a beginner thank you so much for the info🙏
You're so welcome!
Awesome
Thanks so much, extremely helpful information! A fellow musician friend of mine are putting together a plan to start a music school that provides access to kids who might not otherwise be able to afford higher level music instruction. We are deciding which would be the best choice for our plan. One quick question: In the start-up phase of the non-profit, board members are not allowed to do staff level work and receive compensation for it, is this correct?
I’m glad it helped! They can do staff level work because that’s the reality of the startup phase- but if you want to pay people as staff it’s best to keep staff and board members separate.
I would like to know about endowments how to set it up starting on a small scale
Please email me at info@bossonabudget.com and I can provide the name of a colleague who can help.
I have a question, I started a Church and I am also the President of the Board and the Church Senior Pastor. I have not file for Form 1023 yet, but I realized that part V of Form 1023 for Compensations I need to say if I will get compensation now or in the future. Should I have a problem with the IRS for adding that the president and Church pastor will receive compensation?. Or should I just say no because the pastor of the church, which is me is part of the staff of the church?.
Hi Jose, I don’t have much experience with organizing churches but generally you want the board and staff positions to be different, so the board/trustees (whatever you call them), would not be paid. I’m not sure if your role as President for your church is a non-board position, but if it’s a staff position it’s definitely ok to be paid.
I just purchased a house on which im converting it into a halfway house would it be in my best interest to stay for profit or should i try to go non profit.i want lie i want all the profit for self could help me out on this topic.Thanks
I can’t answer that for you but I will say keep this in mind- if you want to keep all the profits to yourself, then a nonprofit isn’t for you. If you want to assume absolute control of all decisions, then a nonprofit isn’t for you. Also consider how you plan to make money - nonprofits provide another avenue to make money (through grants and donations) that most businesses can’t access.
@@BossonaBudget ok i get what your saying i will just operate the halfway house as a for profit and my transitional living houses with wrap around services non profit again thanks in your response.
Can you go a kittle deeper on conflicts of intetest
Yes, I'll add to my list
So the board members can not be of your immediate family and you can also not pay them atleast till you make profits in million? Is that really possible?
It’s possible to have them on the board- it’s not recommended if it creates conflicts which can bring more scrutiny your way. Also you would want to be careful paying board members. There’s not a blanket answer so I don’t want to give you just a straight answer because I don’t know all the details.
Should a voting board member be allowed to be a paid employee who is allowed to constantly overrule the Director to the detriment of the library? And should a Board President be allowed to profit from making things for the library? Oh, and should the board be choosing new employees when they have NO CLUE or actually DENY what happens daily in the library?? Signed an 8 year Director who’s packing her bags...
Sounds like a nightmare. 😱
@@BossonaBudget And this is just 3 examples of their ‘shtuff’.
Quick question with the reimbursing board members -- can we allow board members to simply use the debit card designated for the organization for their non-profit related expenses, e.g. travel?
Yes, I've seen it done that way. I would have a clear policy on what expenses are allowable.
@@BossonaBudget thank you!
Can I start off as an executive director and have like a 2-3 year plan in place to transition into being apart of the board?
If you follow your bylaws in transitioning to those roles then it should be ok.
Is it easier to just look for board members who don’t want/need a salary? I only need 3 in my state and I think I can be one if I put it in the Bylaws? I’m not planning on taking a salary myself because I am financially ok. I just wanna open a homeless shelter and just pay staff. I wanna minimize volunteers because I don’t trust people who work for free even though I just contradicted myself by asking if I can hire unpaid board members 😂😂😂 sorry. I still don’t trust people who work for free.
(Unless you have rent, utilities, food, etc covered by some means-that is life on easy mode)
I guess it just depends. I’d have to get to know someone first. I don’t like pre-judging people not because I’m woke, but because it sucks mis-judging someone that could’ve been an ok person if you got to know them.
Hi, I thought I answered this! Most board members are unpaid, so that's a mindset hurdle you'll have to overcome. You have to remember that this is not your organization, it's a public organization so be careful having too close ties to the organization because it will stifle your growth. Just want to be real with you before you go down the path and get burnt out. I think it would really help if you joined my community when it launches to help you along the journey: bossonabudget.lpages.co/purposeprofitsociety/