FundRaiser Blog

The FundRaiser Software Blog is an excellent resource for nonprofit organizations looking to learn more about fundraising, donor management, membership management, and much more.

Board Member Paying Staff Member Extra

Ananias

Dear Kim,  

I chair the board of a small religious organization.  Each employee has to raise a certain amount toward their salary and this amount is set by the board, as are the salaries. Recently it came to my attention that one employee is receiving additional support from a board member who provides a designated gift for that individual’s support. I was caught off guard to find that this individual is making more money than we knew and that a particular board member is providing it.  This seems like money laundering to me. The board member is making a financial gift to a family, and running it through the non-profit so that it can be tax deductible. Is there an IRS rule, or a piece of governance that would prevent this sort of thing from happening? 

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Accepting 'No' & Moving On

Accepting 'No' & Moving On

Dear Kim,

I am the executive director of a small environmental justice organization focused on organizing a community to stand up to a large and highly polluting CAFO (Concentrated Animal Feeding Operation.) We have recently had some victories but need to keep pushing. One of our board members comes from quite a wealthy family and he has been very generous himself plus raised a lot of money from family and friends. But recently we needed an extra $10,000 very quickly so I went to him and he said he couldn’t give anything right now. I didn’t say anything but I was really upset. The man has more money than all of us put together! I need to get him to change his mind. How can I do that?

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Changing from Membership to Non-Member Organization

Changing from Membership to Non-Member Organization

Dear Kim,

I am the director of a membership nonprofit and our board is thinking about changing us to a non-member organization to help us refocus our efforts to serve our clientele, clean up organizationally and become more streamlined and efficient. Would this be a mistake and how tough is it to do this? What is the real question we should be asking ourselves to help determine whether we should be a non-member or member nonprofit?
—Members Only

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