Executive Compensation Policy

The IRS asks tax-exempt organizations on the IRS Form 990 if they have a process for determining executive compensation that requires an independent review (and approval) of the proposed compensation, the use of comparability data, and contemporaneous substantiation of the deliberation and decision. This template policy meets those criteria and provides a roadmap for properly approving executive compensation.

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This document is not legal advice. You should consult a lawyer with experience representing Pennsylvania nonprofits before signing and filing documents. Every startup nonprofit is different, and a lawyer can help guide you through the startup process and the important considerations relevant for your particular organization.