Can a husband and wife be members of the board of directors? And can a member of the Board be a paid employee of the corporation?
Yes and yes. Although a few states may have laws that required a majority of the Board to be “independent,” i.e. unrelated to each other, I am not aware of any state that prohibits spouses from serving together. Whether or not it makes sense, of course, depends on the circumstances. (See Ready Reference Page: “The Key Question: Whose Organization Is It?”)
It is also possible
to have employees serve on the Board, but it is a very rare
event in which any employee other than the CEO serves on the
Board. Perhaps if a husband and wife pair of founders both
work for the organization it would make sense, but having
subordinate employees on the Board can often cause problems
With pressure mounting on nonprofits to consider affiliations with other organizations, this workshop is designed to help you better navigate the world of mergers, acquisitions and affiliations. Unlike the corporate world, there are no financial "matchmakers" to help nonprofits identify successful partners for a merger. Learn more in our pre-recorded webinar.
Weekly question and answer
Notice of each full edition
and its free stories
Report on 501(c)(3) electioneering
What our readers say about Nonprofit Issues
Once again you've tackled a tricky question and explained it so we all can understand the issue.--M.V.
Thank you for your informative and keen advice on nonprofit matters. I believe it's a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.
Have a question?
Other ways to
Talk to the Editor
Next Conference Call:
Wednesday, November 5, 2014
Participate in this bi-monthly telephone seminar conference call and ask your questions directly to Editor Don Kramer.
Access the entire site
($9.95/24 hours, $17.95/3 months).
Full Day Program
A well-received full-day program that covers the current hottest topics in nonprofit law. Qualifies in Pennsylvania for Continuing Education credits.
Don is available for programs and speaking engagements ranging from a one-hour presentation to a full-day primer on nonprofit law. Contact us if you are interested in having him speak at your program.