At a time when nonprofits are struggling to raise money from government and private sources, the practice of some private foundations to compensate trustees is drawing scrutiny.
In May, the Massachusetts Senate voted to ban payments to board members of all nonprofits, including foundations, registered in the commonwealth; the Massachusetts House has yet to act on the measure.
An analysis by The Chronicle of Philanthropy of the 50 wealthiest foundations in the U.S., based on the latest available informational tax returns, found that 38 compensate board members to the tune of more than $11 million. A June 24 Chronicle article noted that debate around whether foundations should offer stipends often becomes “emotional” because very few charities pay board members.