Nonprofit corporations are subject to the prohibitions on private inurement, self-dealing, and other transactions that benefit their officers and directors in a personal manner.
Basically, no portion of the income or assets of the nonprofit may be paid or distributed to any private individual except in furtherance of the Mission. One major exception to this rule is that “reasonable” compensation can be paid for services actually performed for the corporation.  

Thus, salaries, benefits, and other forms of compensation paid to the CEO and other key employees are permissible provided that such compensation is approved by “independent directors” and is reasonable in the context of what similar organizations pay to their employees under similar circumstances. The IRS and the courts have set forth standards for determining whether these requirements are satisfied.

Nonprofit Guru LLC has significant experience with these requirements and has developed a “Compensation Package” of services that the Compensation Committee of the Board can utilize to pay compensation and benefits to the CEO and other key employees safely. This package includes the following:

• One hour of live Compensation Committee training on video.
• Web-based Compensation Analysis and Report for the CEO and each included key employee.
• Comprehensive Employment Agreement (optimized for “best practices” compensation provisions) for the CEO and each included key employee.
• Compensation Committee Key Employee Compensation Philosophy.
• Compensation Committee Charter.
• Compensation Committee “independent director” requirements (as established by the IRS).
• Compensation Committee Agenda template.
• Compensation Committee Minutes template.

These services are separately valued at $2,750 for one employee, and regularly priced at $1,350 (first employee) and $1,165 (each additional employee) for the Compensation Package. But for a limited time, take 40% off the package price and purchase it for only $810 for the first employee and only $699 for each additional employee prepaid. Contact us here to set up your FREE initial orientation meeting. 

If your company qualifies, you can add a “qualified small employer health reimbursement arrangement” (QSEHRA), which, among other benefits, will allow an employee to pay for a long list of health-related expenses with pretax dollars, and will also allow an employee on Medicare to deduct her Part B premium. The total cost is only $299 prepaid regardless of the number of employees. Again, contact us here to set up your FREE initial orientation meeting.

Please click here to go to the "Store" page after your orientation to purchase the Compensation Package for one or more key employees and to purchase the QSEHRA.