501(c)(3) board of directors

Technical topics regarding tax preparation.
#1
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Can a 501(c)(3) pay its board of directors for the time spent attending meetings without violating the "no inurement" provision of tax-exempt orgs? Not expense reimbursements, but a per- hour or per- meeting payment.
 

#2
Nilodop  
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Yes if reasonable.
 

#3
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Report on Form 1099-MISC as Other Income. Also report on Form 990 Part VII.
 

#4
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What would make it not go on a 1099NEC?
 

#5
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I stand corrected. It's Form 1099-NEC.
 

#6
JR1  
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But it's not subject to SE....I vote for the MISC box 3.
.
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#7
Nilodop  
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Well, ... https://www.thetaxadviser.com/issues/20 ... ry-01.html
https://lawprofessors.typepad.com/agric ... t-tax.html
Corporate director. Corporate director fees are self-employment income. Report these payments on Schedule C (Form 1040).
https://www.irs.gov/publications/p525#e ... 1000229532
 

#8
JR1  
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Oh. Huh. Even for a non-profit...?
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Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
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#9
sjrcpa  
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Yes. It doesn't matter who pays it. Would you think wages paid by a nonprofit are not subject to SS & Medicare?
 

#10
JR1  
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LOL. Well, maybe they shouldn't be! lol

I just find it odd to consider that anyone is in the 'business' of being a director....
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
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#11
sjrcpa  
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Directors of mutual funds earn 6 figures or more
 

#12
JR1  
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Huh. How do I get on one of those?
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
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#13
Nilodop  
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I just find it odd to consider that anyone is in the 'business' of being a director..... Well, ...
https://corpgov.law.harvard.edu/2017/03 ... directors/
Professional directors, as often defined by academics and practitioners, are independent directors whose only vocation consists of serving as corporate directors on one or more boards. Such directors hold no other full-time employment. Currently, over 84 percent of corporate boards include at least one professional director.
 

#14
JR1  
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Yeah, and that's completely different to me. I serve on a non-profit board (for free let us note), but if I did get a few hundred bucks for it, I'm hardly in the business! No different than the guy who installed those windows so many years back....
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
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#15
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JR1 wrote:Huh. How do I get on one of those?


When I was growing up in Scotland, the primary requirement was the right color of school tie or a military one.

In the UK, company directors are treated as employees, so subjecting the income to SE tax makes sense to me. Wasn't one of the factors in the window installer case that he only did it for about a month after he had retired from his own business?
 

#16
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Most of the folks I work with who serve on boards or councils of various flavors are paid as employees
~Captcook
 

#17
sjrcpa  
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Mine get 1099-NEC (previously MISC)
 


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