Establish presumption of reasonableness for non-for profit

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A Presumption of Reasonableness

Choose an article about a not-for-profit as it relates to the three elements that establish the presumption of reasonableness for a non-for profit organization. (p133). Address each of these three elements to include specific data, addressing conflict of interest, and documenting the basis for its determination. Incorporate a strategy and action plan for any other challenges the organization meets as it relates to intermediate sanctions.

1. These are the three elements that is required. The compensation arrangement must be approved in advance by a governing board (or a committee comprised entirely of independent directors) without conflict of interest.

2. The board or committee must obtain appropriate data as to comparability (e. g., compensation paid by similarly situated organizations for positions with a similar role and scope of responsibility).

3. The board or committee must adequately document the basis for its determination (e. g., the record includes a description of the decision made, the comparability data relied upon, and the basis for determining the compensation to be reasonable).

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Reference no: EM131096450

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