On Mon, 4 Mar 1996, Sam Stokes wrote:
>
> Are there guidelines, recommendations, or sources of information concerning th
e
> percentage of gross profit that a nonprofit corporation should be reasonably
> spending on salaries, benefits, etc.?
The short answer is "not really," at least officially.
With respect to the specific question of how much an executive can be paid, the
legal answer is "whatever the market will bear."
The IRS considers that the market requirement is satisfied if there is an
independent board.
Contact me if you want more information on this issue.
Andy Finch
AAM Government Affairs
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202-289-9125