Board Pay

You may have read the news this month that Massachusetts lawmakers are in the process of possibly putting limits on pay for nonprofit board members. This could mean big changes for how some larger nonprofits - particularly those in the health and education sectors - operate. It is no surprise that students and professionals of nonprofit organizations have been monitoring the issue closely.

From The Chronicle of Philanthropy State Watch blog:

The measure arose from a proposal backed by Martha Coakley, the Massachusetts attorney general, that followed a public outcry over five-figure stipends for directors of the state’s four nonprofit health insurers, two of which voluntarily suspended board compensation.

The proposal is not attempting to do away with all nonprofit board pay, but the limits on pay will affecting a wider scope of organizations than just those paying individual board members five figure salaries. As an alternative, organizations will be able to apply for exemptions to the pay limits with the state attorney general, but the proposal is still causing a great deal of concern among organizations that may be affected. As described in the posting, some agencies are concerned over maintaining board diversity, socio-economic representation, and engagement if there are limits on pay: