samsloan wrote:

Quote:

Originally Posted by nolan You made the statement: Quote: If employees could be board members and run the organization then all corporations would convert to not-for-profit status, just to avoid the payment of taxes. You should explain what you mean. Corporations cannot convert to not- for-profit status just because they want it, they have to meet the IRS's requirements for the type of not-for-profit status they're applying for. And I don't see where employees being on the Board has any relevance here.

If you do not see the relevance, then kindly explain why every not-for-
profit corporation has a rule that employees cannot be a member of the
board.

Sam Sloan


Already refuted. Somehow Sloan didn't get around to crosspostingit.

Mike Nolan wrote:

Not every not-for-profit has that rule, nor is it required under
Illinois law.

The Illinois Attorney General has a web page with advice for board
members of not-for-profits (http://
www.illinoisattorneygeneral.gov/ ... teers.html) which includes this:

"If a board member is also an employee, compensation can be paid
but the employee/board member should not participate in setting his or
her compensation."