Tax Exempt

Tax-exempt organizations (TEOs) face the challenge of recruiting and retaining talent critical to their missions while competing for this talent with for-profit firms and ensuring compliance with regulations governing executive compensation at TEOs, such as the intermediate sanctions law. Under these rules, disqualified persons (e.g., family members, board members, executive officers) may be personally penalized if the IRS determines that the compensation awarded to them was found to be unreasonable. TEOs often struggle to strike a balance between paying competitively with honoring the organization’s mission and using donor resources responsibly.

Coda can assist tax-exempt clients navigate the complexities of their executive compensation program and strike a balance between paying competitively and regulatory compliance.

We work with management and boards to structure compensation programs that are meaningful, sound, and enable our clients to fulfill their mission.

We strive to partner with our non-profit clients to ensure that they have the tools and information needed to successfully navigate the questions surrounding non-profit executive compensation.

‍Coda's services include:
  • Compensation strategy, philosophy and guiding principles
  • Peer group development
  • Executive and board market competitiveness review
  • Incentive plan design
  • Review of employee benefits
  • Processes to ensure "rebuttable presumption" of the reasonableness of compensation under Internal Revenue Code Section 4958
  • Employment agreements and severance policies

Examples

Tax Exempt -  Report

Sample