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    quilting Sandie's Avatar
    quilting Sandie Posts: 1, Reputation: 1
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    #1

    Aug 6, 2012, 11:01 AM
    Non-profit organizations.
    I belong to a non-profit organization that consists of dues paying members. In our by-laws it states that no dues paying member may be monetarily paid as staff. If this clause in the by-laws is changed, or ignored, could our organization lose our non=profit status?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Aug 6, 2012, 11:23 AM
    Members can also be employees. However, no member of the Board of Directors can be an employee as it creates a conflict of interest. The basis for this is that the board has the ultmate say as to whether an employee should be retained, fired, given a raise, etc. However if your by-laws state that no member can be an employee then you should not simply ignore that rule - the board needs to first go through the proper procedure to amend the by-laws before hiring a member as an employee.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #3

    Aug 6, 2012, 11:27 AM
    I don't think that would be a problem, but you might want to look at the IRS's website and click on the tab for non-profits. Your organization has obtained it's section 501 (c) (3) recognition?
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