Executive Compensation Services and Reports For Nonprofit Organizations

Protect Your Organization with Reasonable Executive Compensation

The IRS and state agencies are strongly focused on executive compensation in tax-exempt organizations. This focus has been increasing in recent months. Executives and board members face significant penalties for excessive compensation and the organization could lose its tax-exempt status.

The IRS Intermediate Sanctions regulations:

Compensation is generally considered reasonable if amount is what would ordinarily paid:
    -For like services- such as job duties
    -By like organizations- organizations similar in size, nature and mission
    -Under like circumstances- such as geographic location

Require the executive to repay excess compensation plus interest and penalties.

Board members may also be subject to penalties.

But the IRS has set out a “safe harbor” provision in which organizations, if they follow set procedures, can create a “presumption of reasonableness”. These procedures include: appropriate survey comparisons, independently approved in advance and thoroughly documented.

The Compensation Center Consulting Services and Reports

We provide a range of services to fit your nonprofit organization’s needs for executive compensation:

Custom Consulting Services
Independent Valuation Reports (IVR)
Compensation Survey Reports

The Compensation Center Services are Unique

Data - CC has access to the most comprehensive and timely compensation survey available—both for nonprofit and for-profit organizations.

Independence – CC provides only consulting services related to compensation to avoid potential conflict of interest with other professional services provided.