The final private benefit rule discussed in this series is the excess benefit transaction rules, codified in section 4958 of the Internal Revenue Code (“IRC”), which are a similar but distinct set of rules from the private inurement doctrine discussed in Part II. Similar to the private inurement doctrine, the excess benefit transactions rules are […]
intermediate sanctions
Compensation Strategies and Best Practices for Nonprofit Organizations – Part Two
“Best Practices in Nonprofit Compensation” The laws regarding nonprofit compensation are another element that can make compensation a disliked topic in an organization. The penalties are severe and there are no precise formulas for generating a compensation plan. With public charities, the IRS mainly focuses on certain individuals such as directors and key employees. Excess […]