Can Nonprofit Board Members be Paid Employees?

Content Summary

Maintaining business ethics is essential for any organization but is particularly
important for nonprofit organizations. If a nonprofit break the law or is suspected
of any behavior that could question the integrity of their organization, it would
obviously cause numerous systemic issues including the loss of strategic donors
and corporate sponsors. Not only does this limit the good the nonprofit can do,
but it can also affect its staffing and volunteers which only leads to ongoing
problems.
One question that frequently arises about nonprofit payroll is whether board
members can be paid employees. Let’s explore this question further to determine
what would be considered ethical and what is legal.

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