The Rebuttable Presumption of Reasonableness procedures, described in Treasury Regulation Section 53.4958-6(a), were promulgated to help charities avoid overpaying certain individuals and entities (known as disqualified persons) that might be able to exercise influence on the charity’s decision-making. Among those included as disqualified persons (DQPs) are: Directors (board members), trustees, presidents, CEOs, COOs, treasurers, CFOs, […]
rebuttable presumption of reasonableness
Nonprofit Compensation: Tips on Using Comparability Data
Executive compensation can be a tricky area for the board of a nonprofit organization. As we’ve discussed previously, the recommended process for determining the appropriate compensation package for an executive of a nonprofit organization involves conducting a review of what similarly-sized organizations, in the same geographic area, offer their executives (of comparable level). This is […]
Executive Compensation – The Legal Issues
Determining the appropriate amount of compensation to pay an executive is one of the most important decisions a board is asked to make. Board members must balance budgetary concerns with the need to find a qualified candidate. Traditionally, it was not uncommon for nonprofits to expect executives to work for significantly less than they might […]