Governance Q&A: Paying for board service?

Article by Jane Garthson, Governance Q & A, Charity Village. Posted July 4, 2011 

"Some of the directors of my nonprofit want to be paid a per diem for board and board committee work. Is this ethical?

There's recently been a lively online international discussion among governance professionals and senior staff on this very issue. I know it is an active discussion topic in a number of countries, so it's likely someone in each of our organizations is thinking about it too.

The gist of the overwhelming majority of comments in Canada, UK and the USA is that nonprofit board members should not be paid for board service. Instead, they should be giving their time to the cause. If the nonprofit is a charity, the intensity of feeling against such payments goes up — way up. Charity directors are expected to give both time and money, not be a drain on charity resources. Seeking such payments from a charity is perceived as highly unethical. And in some jurisdictions, paying charity directors would not be legal. [Article continues...]