Legal Junkies Forums

#1 Community for Legal Questions and Answers

 
Go Back   Legal Junkies Forums > NONPROFIT LAW and FUNDRAISING > Other Nonprofit Law Issues

Register FAQ Tags Members List Social Groups Search Today's Posts Mark Forums Read Layout

Notices


Reply

 

Thread Tools Search this Thread Rate Thread Display Modes
Old 09-10-2016, 03:52 PM   #1
Tron450
Guest
 
Posts: n/a
Default Are our directors allowed to be employed as a salaried officer

Hi
This is a clause from the bylaws of our foundation. it s not quite clear to us to understand if directors are allowed to be employed as a salaried officer ?

The Directors shall serve as such without remuneration and no Director shall directly or indirectly receive any profit from his position. A Director may be paid reasonable expenses incurred by in the performance of their duties. Nothing herein contained shall be construed to preclude any Director from serving the corporation in any capacity, other than as a Director of the corporation, and receiving compensation therefore.
  Reply With Quote


Did you find this post helpful? Yes | No
Old 09-10-2016, 04:39 PM   #2
AFFA
Top Level Member
 
AFFA's Avatar
 
Join Date: Dec 2009
Posts: 23,382
Default Re: Are our directors allowed to be employed as a salaried officer

I wish to inform you that as clause says that directors can work in any other capacity thus director may work as an employee in other capacities. Further clause says that compensation for other work may be received thus compensation may be claimed for performance of functions other than director.

AFF
AFFA is offline   Reply With Quote


Did you find this post helpful? Yes | No
Old 09-11-2016, 06:11 AM   #3
LJJ
Guest
 
Posts: n/a
Default Re: Are our directors allowed to be employed as a salaried officer

I agree that is what it is says - and that is legal and common.
  Reply With Quote


Did you find this post helpful? Yes | No
Old 12-03-2016, 07:17 AM   #4
241DAN
Junior Member
Country:  
241DAN's Flag is: United States
 
Join Date: Sep 2016
Posts: 14
Default Re: Are our directors allowed to be employed as a salaried officer

So at our local nonprofit recreation club, the director is also a gymnastics instructor there,

I guess that is ok and not so unusual? It seemed to me to be a little bit of a conflict of interest.
241DAN is offline   Reply With Quote


Did you find this post helpful? Yes | No
Old 12-03-2016, 09:26 PM   #5
Unregistered
Guest
 
Posts: n/a
Default Re: Are our directors allowed to be employed as a salaried officer

It is not illegal if the corporate documents allow it.
Of course the person still must exercise reasonableness, and his actions are subject to review by the shareholders, officers, Board members, and the IRS.
  Reply With Quote


Did you find this post helpful? Yes | No
Old 12-04-2016, 12:52 AM   #6
Disagreeable
Top Level Member
Country:  
Disagreeable's Flag is: United States
 
Join Date: Oct 2012
Posts: 15,484
Default Re: Are our directors allowed to be employed as a salaried officer

Generally, most non profits operate with major employees serving on the board for no extra remuneration. Their perspective can be valuable as they are engaged in the day to day operations. Outside directors can usually be had also, however most receive remuneration and their value is questionable depending on their fit with the organization. Foe example Chelsea Clinton id a director for a non Clinton company. Her qualifications are that she was a teacher hired under influence, she gets a salary from the Clinton foundation for not making charitable works with most of the money, she is a mommy and most importantly her husband parents have been convicted of political theft in office, her mother and father should have been and her husband ran his investment company into bankruptcy. How one could see value in her qualifications as aside from being a family agent is beyond me.
__________________
Due to a recent promotion, I should now be referred to as Major Obvious.

I would not be trying to provide information and knowledge if I did not sympathize.

Some days it is just not worth chewing through the restraints to face life.
Disagreeable is offline   Reply With Quote


Did you find this post helpful? Yes | No
Old 12-04-2016, 09:13 PM   #7
Wenton2
Top Level Member
Country:  
Wenton2's Flag is: United States
 
Wenton2's Avatar
 
Join Date: Sep 2016
Posts: 752
Default Re: Are our directors allowed to be employed as a salaried officer

This entire nonprofit area is a little questionable sometimes, and you just have to watch what's happening and if there's anything unusual reported to authorities.
Wenton2 is offline   Reply With Quote


Did you find this post helpful? Yes | No
Old 12-05-2016, 02:57 PM   #8
Unregistered
Guest
 
Posts: n/a
Default Re: Are our directors allowed to be employed as a salaried officer

It also pays to make sure good auditors are closely watching everything.
At all times.
  Reply With Quote


Did you find this post helpful? Yes | No
Old 05-09-2017, 06:44 AM   #9
Unregistered
Guest
 
Posts: n/a
Default Re: Are our directors allowed to be employed as a salaried officer

One of our directors of our small nonprofit is also a VP,
From what I see above that should be okay, is that right?
Thank you for any comments!
  Reply With Quote


Did you find this post helpful? Yes | No
Old 05-09-2017, 05:32 PM   #10
Unregistered
Guest
 
Posts: n/a
Default Re: Are our directors allowed to be employed as a salaried officer

Yes they normally can be both. Unless your by-laws say otherwise.
Read carefully the posts above and confirm your own facts with legal counsel!
  Reply With Quote


Did you find this post helpful? Yes | No
Reply

Bookmarks

Tags
None

This thread has 10 replies and has been viewed 4321 times


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:


Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads

Thread Thread Starter Forum Replies Last Post
Darien fired African-American officer for dating white officer, suit says FBI News Feed FBI and USA.gov Updates 0 08-29-2017 03:00 AM
Board of Directors (Responsibilities) Elizabeth52 Other Real Estate Law Matters 6 11-12-2013 08:06 AM
Concealing documents from directors naiveman Business Contracts and Partnerships 3 06-02-2013 04:58 AM
Premises Inspections: Allowed or Not Allowed? Unregistered Landlord vs Tenant Issues 1 06-25-2010 04:35 PM
Overtime for Salaried lisadeck66 Other Labor Law Matters 1 01-26-2008 11:32 AM




All times are GMT -5. The time now is 07:28 PM.


Use of the Forums is subject to our Disclaimer. Copyright 2009-2019 by LegalJunkies.com