Compensation Compliance: Follow the Rules and Avoid Private Inurement

Wednesday, June 19, 2019 - 11:00am to 12:30pm
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Nonprofit organizations have ongoing considerations to manage with regard to staff compensation. When paying staff and executives, leadership must navigate not just the rules about pay and working hours covering all employees, but also the special rules governing nonprofit pay practices. This session will begin by reviewing general concepts concerning employee pay. We will define an employee vs. and independent contractor and review exempt vs. non-exempt employees. These are essential classifications that are made by virtue of statutory definitions, not the nonprofit’s choice. From an understanding of the basic rules of compensation, we will progress to the requirements of nonprofit pay. We will define private inurement and excess benefit transactions and then work step-by-step through the rules and best practices that ensure nonprofit compensation is reasonable and not excessive.

Please join Sally A. Morris, an attorney who has been advising nonprofits for over twenty years, for an informative and thorough explanation of the nonprofit compensation requirements.

What You'll Learn

Just a sampling of what this webinar will cover:

  • The rules for compensation including employee status, exempt and non-exempt status

  • An understanding of private inurement and excess benefit transactions

  • Penalties involved in engaging in excess benefit transactions

  • A step-by-step process for ensuring compensation is reasonable and not excessive

  • Policies and procedures to be compliant

  • How to ensure executive hiring and compensation is consistent with nonprofit status and compliant with tax exempt status


Your Conference Leader

Your conference leader for “Compensation Compliance: Follow the Rules and Avoid Private Inurement” is Sally Morris. Sally is an attorney who is passionate about representing nonprofit organizations which she has enjoyed doing for over twenty years. Sally also practices in the area of employment law and brings the convergence of those two disciplines together to provide a unique knowledge base and experience to advise nonprofits. Sally has experience with unincorporated associations, private foundations, membership organizations and public charities. She has advised nonprofits concerning governance and growth, fundraising issues, state registration compliance, excess benefit transactions, private inurement, policy and procedures, formation, and many other issues.

Sally has been running her own law firm since 2003. Prior to becoming a small business owner, Sally began her career as an associate with the Boston, Massachusetts firm Mahoney, Hawkes and Goldings as litigator in complex civil and criminal matters. She moved to Maine in 1997 and worked as an associate and partner with Friedman, Gaythwaite Wolf & Leavitt, continuing to advise nonprofits and have an active employment law and litigation practice. Sally is admitted to practice law in Maine and Massachusetts and has served on many community boards. These currently include the Portland Conservatory of Music, Family Ice Rink and the Fiddlehead School of Arts and Sciences, a Maine Charter School, reflecting her passion for music, ice hockey and education. Sally graduated from Boston University and from the New England School of Law, cum laude.

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