Charities Review Council - Spotlight on Accountability: Board Compensation Standard

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Spotlight on Accountability: Board Compensation Standard

Some may argue that paying busy professionals to help oversee nonprofits ensures that they devote ample time to their board responsibilities. However, board compensation can call into question a nonprofit’s financial integrity, especially in light of the ever-increasing scrutiny of nonprofit practices.

The Board Compensation (2C) standard recommends that governing board members receive no compensation for board service other than reimbursement of expenses incurred as a result of board participation. The Board Compensation standard is one of the 16 standards the Charities Review Council’s Accountability Wizard uses to reviews charities.

Nonprofit organizations exist to serve the needs of the community. It does not exist to satisfy shareholders. Therefore, it is only appropriate that members of a nonprofit's Board of Directors serve without compensation.

To learn more about the Council's Accountability Standards or to download the complete list of standards, click here. You can also learn more about charity accountability by logging onto www.SmartGivers.org or contacting us at (651) 244-7030 (toll free: 1-800-733-GIVE).

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