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Non-Profit Executive Compensation Under Attack: Non- Profit Boards and Executives Share Risk of IRS Penalties For Excessive Compensation

OPEN MINDS, The Behavioral Health & Social Service Industry Analyst Industry Analysis Suppose that you have just received an offer to become the new executive director of a non-profit organization. Prior to making the offer, the chairman of the board of the organization circulated your resume at the board meeting and then presented your financial package, along with the recommendation of the hiring committee. The board voted to approve your hiring. If this were a true story, you could be subjecting yourself to substantial new tax penalties for failure to comply with a law called “intermediate sanctions.” Intermediate sanctions . . .

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