Is Board Member Compensation A Good Idea?

If your organization struggles each time it needs to fill a board vacancy and does not always come up with the candidates it desires, it may be time to consider creating a board compensation program.

Add Up the Pluses and Minuses

There are advantages to a board compensation program. Offering compensation could help attract board members with specialized expertise, such as fundraising or a well-regarded community presence. Compensation also might be a good idea if your board members are expected to invest significant time and effort, or if your not-for-profit has a business model that competes with for-profit organizations, such as a not-for-profit hospital. In addition, providing compensation can help create an obligation to perform on the board member's part and promote professionalism, such as board meeting attendance and accountability.