The case for remunerating not-for-profit boards centres on a need to attract skilled and diverse people and recognise them for the time and effort they put in.
The argument for not remunerating them is focused on reducing potential liability risks associated with being a director. Paying directors might also be contrary to the spirit of the not-for-profit sector. Many believe that all of a not-for-profit’s resources should go towards furthering the organisation’s purpose.
Chartered Accountants Australia and New Zealand has released a paper ‘Remunerating Not-for-profit Directors’, which covers key factors NFPs should consider in determining whether those charged with governance should be paid, and offers practical tips for developing and implementing a remuneration policy.
To view the CAANZ paper in full, click here.