Director Compensation: What Québec Charities Need To Know

Registered charities play an essential role in Québec society. To carry out their mission, they rely on the commitment of qualified individuals who serve as directors. A question frequently arises in this context: is it possible to compensate directors while complying with the applicable legal and tax framework?

What corporate laws provide

Generally, directors of a registered charity act on a volunteer basis. This approach is consistent with the organization’s non-profit mission, as well as with the expectations of donors and the general public.

That said, Québec corporate legislation does not, in and of itself, prohibit the compensation of directors. For example, the Companies Act (Québec) expressly provides that an organization may pay remuneration to its directors, unless its constating documents or by-laws provide otherwise.