Board Listed (on Form 990) / Board Members Not Compensated:
The IRS requires that any compensation paid to members of the charity's governing body be listed on the form 990. Furthermore, all members of the governing body need to be listed whether or not they are compensated. It is not unusual for some members of the board to have compensation listed. The executive director of the organization frequently has a seat on the board, for instance, and is compensated for being a full time staff member. However, it is rare for a charity to compensate individuals only for serving on its Board of Directors. Although this sort of board compensation is not illegal, it is not considered a best practice.
If the charity fails to report its board members, or compensates any of the members for their participation on the board, then we deduct 4 points from its Accountability and Transparency score.