WTOP: 5 ways nonprofits can…
Alice Korngold of Korngold Consulting thinks nonprofit executive compensation done right involves four things:
- There are no conflicts of interest over the compensation matter,
- Conducting a compensation study — possibly by engaging an outside firm — to determine a fair and reasonable compensation package for the executive,
- Documenting the process of the board’s deliberations and vote, and
- Filing all of this information on the IRS Form 990.
It is often best that these studies are conducted by an outside firm with a reputation for impartiality. Provided that the consulting firm’s rates are reasonable and that they are selected through a clean process — meaning they are not run by a board member’s college roommate — they can insure that the research is done cleanly and in a timely fashion. A consulting firm can also add additional PR and press to a nonprofit — showing the public that the nonprofit does things fairly and transparently.