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Building Families Together, Inc.: Compensation Case Study

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Compensation levels paid by similarly situated organizations, both taxable and tax-exempt, for functionally comparable positions. “Similarly situated” organizations are those of a similar size, purpose, and with similar resources;
Building Families Together, Inc. NFP Bylaws Page 17 of 20
b. The availability of similar services in the geographic area of this organization;
c. Current compensation surveys compiled by independent firms;
d. Actual written offers from similar institutions competing for the services of the person who is the subject of the compensation arrangement.
As allowed by IRS Regulation 4958-6, if Building Families Together has an average annual gross receipts (including contributions) for its three prior tax years of less than $1 million, the Board members will have obtained and relied upon appropriate data as to compare if it …show more content…
Any actions taken with respect to determining if Board Members had a conflict of interest with respect to the compensation arrangement, and if so, actions taken to make sure the member with the conflict of interest did not affect or participate in the approval of the transaction (for example, a notation in the records that after a finding of conflict of interest by a member, the member with the conflict of interest was asked to, and did, leave the meeting prior to a discussion of the compensation arrangement and a taking of the votes to approve the arrangement);
f. The minutes of the members of the Board’s meetings at which compensation arrangements are approved must be prepared before the later of the date of the next Board meeting or 60 days after the final actions of the Board are taken with respect to the approval of the compensation arrangements. The minutes must be reviewed and approved by the Board and committee as reasonable, accurate, and complete within a reasonable period thereafter, normally prior to or at the next Board meeting following final action on the arrangement by the Board.
Section 6. Annual

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