What is the percentage of a non-profit's income that can be paid in salaries to its directors?

Question

What percentage of the money coming in through contributions can be paid to directors and and board members of a non-profit corporation? Any more info on this topic?

Answer 1

There is no limit to the percentage of income that can be paid in salaries to directors however, that information is recorded on your tax return which is required to be available for public inspection. Anyone who sees that there was an unusually high amount paid to directors will not likely be contributing to that charity. People want their money to go to the programs which the charity serves, not the management of the charity.

Answer 2

There are no firm guidelines to my knowledge. If you have a private foundation, there are prohibitions on self-dealing and requirements to make qualifying gifts. Whether it is a private foundation or a public charity, the general requirements to operate for an exempt purpose and not to provide for the private economic inurement or any individual would limit the amount of salary payable to individuals. If your charity is the city's united way that takes in millions and requires full time work for fund raising and distributions, the compensation would be higher than for a single purpose charity that meets once a year to approve the same gift to the same recipient institution. that's just common sense.

Answer 3

The "you owe me $250 became a gaggle of b.s." Say it up the front or do not even shaggy dog tale about it. also, if the adviser, "Pat", is so impressive, then be sufficiently huge to provide your advice or reply with out being sarcastic. the advice would were taken extra useful with out the attitude.

Answer 4

-1,23%