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Executive Search & Compensation in Tax Exempt Organizations


This document discusses how an executive search firm can benefit tax exempt organizations. …

This document discusses how an executive search firm can benefit tax exempt organizations.

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  • 1. ©Copyright2007.CBIZ,Inc.NYSEListed:CBZ.Allrightsreserved. Kansas City: 913.234.1560  Denver: 303.779.1724  St Louis: 314.692.2249  Houston: 713.871.1118  EXECUTIVE SEARCH Working with Search Committees o Select members who have time, influence and a stake in outcomes o Evaluate search partners and internal/volunteer capabilities o Communicate effectively both internally and externally o Outline a search process and timeline early The Search Process o Involve stakeholders in specifications creation o Actively recruit rather than “post and pray” o Candidate recruitment strategies:  Networking  Public Announcements  Associations/Trade Groups  Social Media  Cold Calling Candidate Evaluation o Resume review o Screening calls o In-person interviews Due Diligence o Background Investigations o References – Provided and “back door” o Assessments EXECUTIVE COMPENSATION AND INTERMEDIATE SANCTIONS Intermediate Sanctions o IRS is questioning excessive compensation for non-profit executives o Non-profit organizations must pay “Fair Market Value” to disqualified person(s) o Violations (even inadvertent) can lead to embarrassment and personal liability Protecting the Organization o Compensation is presumed reasonable if:  Compensation arrangement is approved in advance by an independent authorized body  Authorized body obtained and relied upon appropriate data prior to making a determination  Authorized body concurrently and adequately documented the basis for making determination of compensation CONTACTS Angie Salmon, EFL Associates  913-234-1576  Amber Duncan, CBIZ Compensation Consulting  800-844-4510 x295  Executive Search & Compensation in Tax Exempt Organizations