Comments on: Rewarding volunteers in your homeschool organization http://homeschoolcpa.com/rewarding-volunteers-in-your-homeschool-organization/ Helping homeschool leaders Thu, 19 Apr 2012 17:36:08 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Carol Topp http://homeschoolcpa.com/rewarding-volunteers-in-your-homeschool-organization/comment-page-1/#comment-549 Carol Topp Wed, 15 Sep 2010 20:03:32 +0000 http://homeschoolcpa.wordpress.com/?p=28#comment-549 Carl, It is always good to be concerned about following the IRS guidelines for 501c3 tax exempt organizations. In rewarding board members, I am assuming that the rewards are: 1. incidental, reasonable, but not significant, 2. given in appreciation for volunteer services rendered to the organization 3. not expected by the volunteer board member 4. the board member serves out of devotion to the purpose of the organization and not for personal gain Inurement is difficult to define, but basically means sharing the profits of the organization with specific, private individuals to benefit them. Offering a token reward in appreciation for volunteer services works the other way. The volunteer has offered time and service to a group <em>while not expecting any benefit</em>, but is given a show of appreciation. Hope that helps! Carol Topp, CPA Carl, It is always good to be concerned about following the IRS guidelines for 501c3 tax exempt organizations.

In rewarding board members, I am assuming that the rewards are:
1. incidental, reasonable, but not significant,
2. given in appreciation for volunteer services rendered to the organization
3. not expected by the volunteer board member
4. the board member serves out of devotion to the purpose of the organization and not for personal gain

Inurement is difficult to define, but basically means sharing the profits of the organization with specific, private individuals to benefit them. Offering a token reward in appreciation for volunteer services works the other way. The volunteer has offered time and service to a group while not expecting any benefit, but is given a show of appreciation.
Hope that helps!
Carol Topp, CPA

]]> By: Carl Frank http://homeschoolcpa.com/rewarding-volunteers-in-your-homeschool-organization/comment-page-1/#comment-548 Carl Frank Wed, 15 Sep 2010 14:57:58 +0000 http://homeschoolcpa.wordpress.com/?p=28#comment-548 Does this contradict inurement? In this case you appear to be rewarding a person as a result of being on the board. Understand, I am in favor of doing this but I am concerned about the IRS. Carl Does this contradict inurement? In this case you appear to be rewarding a person as a result of being on the board. Understand, I am in favor of doing this but I am concerned about the IRS.

Carl

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