Ohio Nonprofit Executive Compensation Compliance and Other Arms-Length Transactions in 501(c)(3) Organizations
Executive Summary: Mitigating Risk via the Rebuttable Presumption Safe Harbor For scaling 501(c)(3) tax-exempt organizations, transitioning to compensated leadership or entering into contracts with board members creates significant legal exposure under federal tax laws and state nonprofit regulations. To avoid IRS sanctions —which impose personal excise taxes on executives and board members—nonprofits must strictly follow […]
