Should Your Nonprofit Pay Its Board Members?

ARTICLE | July 27, 2026

Many nonprofit leaders assume that paying board members is off-limits, but the reality is more nuanced. In most cases, compensating board members is entirely legal and, in some situations, may even be the right strategic move for your organization. From attracting specialized talent and improving accountability to supporting greater board diversity, the potential benefits are real. However, so are the drawbacks, including donor perception concerns, legal liability implications, and strict IRS regulations around reasonable compensation. If your nonprofit is considering this path, understanding the full picture is essential before taking action.

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