Louis E. Michelson, A Professional Corporation

Providing Legal and Tax Advisory Services to Nonprofit Organizations

State Approval of Nonprofit Board Member Compensation

July 7th, 2011 · No Comments · Uncategorized

The Massachusetts Senate on June 20, 2011 has passed a bill (H3516) that requires public charities to obtain state approval before compensating nonprofit board members.  Lawmakers must reconcile the Senate bill with a House version.

The events leading to this legislation started with newspaper articles that questioned the compensation paid to nonprofit health care executives.  The Massachusetts Attorney General began an investigation which culminated in an April  14, 2011 letter to several of the largest nonprofit health care organizations.  This letter rejected all the justifications offered in support of nonprofit board member compensation.

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