Board of Directors Compensation Policy Toolkit

Lead with Clarity. Decide with Confidence.

This comprehensive toolkit helps your board make fair, transparent, and compliant decisions around executive compensation. Whether you’re starting fresh or updating existing policies, these easy-to-edit resources ensure every step is thoughtful, documented, and aligned with best practices.

Built to Strengthen Governance and Protect Your Mission

Because how you lead—and how you compensate—should reflect your values.

What’s Inside:

• Customizable Policy Template – Tailor it to fit your nonprofit’s size and structure

• Legal Compliance Guidelines – Designed to meet IRS standards and nonprofit norms

• Conflict of Interest Protections – Safeguards to keep decisions fair and unbiased

• Compensation Committee Charter – A ready-to-use framework for forming a review committee

• Documentation Forms – Templates to track decisions and support accountability

• Editable Format – Available in Word and PDF for easy updates and sharing

Perfect For:

• New or growing nonprofits setting up compensation policies

• Boards updating governance practices

• Organizations preparing for audits or regulatory reviews

Why It Helps:

• Promotes transparency – Clear records for every step of the process

• Supports compliance – Keeps you aligned with IRS and state guidelines

• Builds trust – Shows donors, staff, and stakeholders that leadership is thoughtful and fair

Because great leadership starts with responsible decisions—and smart documentation to back them up.