Endangers the tax exempt status of the organization

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Reference no: EM1378172

Bill, Ben, and Bob are the only three directors of a non-profit - tax-exempt organization. In 2010, Bill, Ben, and Bob each received $50,000 for their work as directors. In 2011, each received $500,000 for their work as directors. Did receipt of the $50,000 each in 2010 amount to private increment to Bill, Ben, and Bob so that the tax exempt status of the organization is in danger? Does the important increase in compensation in 2011 indicate that there is private increment that endangers the tax exempt status of the organization? Would it matter if Bill was an attorney who provided legal services to organization?

Reference no: EM1378172

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