Monday, June 06, 2011
The Nonprofit Quarterly | @npquarterly | What is Reasonable Nonprofit Compensation? A Guide to Avoid IRS Penalties
The Nonprofit Quarterly | @npquarterly | What is Reasonable Nonprofit Compensation? A Guide to Avoid IRS Penalties: "Do some nonprofit organizations pay too much compensation? If recent news stories are any indication, the answer is an emphatic “yes.” Not a week goes by without reading about a nonprofit executive earning more than one would expect a “nonprofit” to be paying, especially one that relies on tax-deductible donations and government grants for support. Such news stories are generally critical of the generous compensation packages being paid and question the propriety of this practice. While this may be an issue at some of the larger nonprofits, the average organization struggles to meet its payroll obligations, even for the modest salaries it pays."