Can I or Members of My Family Be Employed by My Foundation?

Generally speaking, yes. Appointing children or other family members as officers or directors is common. This practice makes it possible for your to perpetuate a philanthropic culture within your family and helps to ensure family involvement across multiple generations. Prior to setting the compensation to family members, it is generally a good idea to have a compensation policy in place that requires a disinterested person to set “reasonable compensation” based on established procedures that take into account salaries paid for similar posts at comparable nonprofit organizations. Following these simple steps will ensure that you don’t run afoul of complicated IRS rules and self-dealing penalties.

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