Q&As

Although nonprofit board service is usually a volunteer activity, reasonable fees for service are permissible if the bylaws state so or the majority of the board so determines. However, such compensation is quite rare. According to a recent BoardSource survey, only 3 percent of the respondents compensate their board members.

Board compensation is more common in particularly complex nonprofits, such as health care systems or large foundations. Many organizations believe that a fee is appropriate when the responsibilities of board members are especially time consuming or when legal requirements make the service unusually demanding. Also, compensation can make it possible for individuals of very limited financial means to participate in board service.