Who should pay for a board member’s expenses in serving? Tricky question.  

 

Board Management is a big part of a CEO’s job. Sometimes the details can get in the way of a great relationship. For example, managing the expenses around board members attending board meetings can be tricky. Here is how multiple organizations manage this conversation with sometimes policy, sometimes art, sometimes psychology.  

  

We went to the industry with a series of questions around this topic: 

How does your organization handle the expenses of board members’ travel and lodging? 

What if the board member does not have the resources to afford travel? 

What if the board member requires a caregiver to accompany them? 

Has the pandemic or expense changed the way you conduct your board meetings? How so? 

 

In summary, here’s what we heard from our community:  

• We reimburse, but most board members waive the reimbursement.  

• The cost has gone down because some/all meetings are virtual.  

• If your board member has trouble with the expense of travel, are they the right board member?  

• We make sure expense does not preclude having people impacted by our mission from serving or having a diverse board.  

• The board member is responsible for all expenses.   

 

Here’s what surprised us:  

• We should pay board members in addition to reimbursing their expenses.  

• Recruiting board members for their financial gifts is old school.  

 

From their mouths, below.  

 

Patrick Lynch, Chief Development Officer, Global Empowerment Mission:  

 

“One of the blessings the pandemic gave us was the ability to understand how to best utilize hybrid/virtual workspaces. The virtual option greatly increased board attendance at a number of different organizations I'm involved with professionally and personally. 
 
However, as we all know, there is a true value-add from *in-person* gatherings and the energy and connection established. When in a situation where funds might be needed, the first words I hear in my mind are ‘give/get.’ What if part of a board member's give/get went toward a ‘board development fund?’ That way, the CEO/organization would have set-aside funds to help assist board members who may not have the means to afford travel or certain expenses.” 

 

Claire Gastanaga, Partner, Dunlap Law PLC and former Executive Director of the ACLU of Virginia:  

“If you want your board to be inclusive, as well as diverse, you'll want to consider offering to reimburse all members for reasonable expenses (inclusive of caregivers for folks who need them) and offering to pay them, too. The individual board members can respond to this offer by saying 1) ‘thank you,’ 2) ‘thank you, I'm happy to accept the money and give it back to you as a donation,’ or 3) ‘thank you, I don't need/want the money, and I do/do not want to have my refusal to accept the money noted as an in-kind contribution.’ Here's my blog on paying board members: Disrupting Non-Profits.” 

 

Lori Poland, Chief Executive Officer, EndCAN 

“We've been honored with board members who contribute time, talent, and treasure. We've seen all members as assets and have been humbled to provide financial assistance to members who've needed that support, knowing that their ability to give monetarily is outweighed by their contributions in talent and time. 
 
“A really cool thing from the pandemic was a lesson in contributing to not only our world's children, but into our world itself, and the need to have our meetings in-person was evaluated and determined not necessary. We also believe that our board members are change-makers and lead change-maker lives, so freeing up their time from travel was a bonus on so many levels.  
 
“Lastly, we've shifted to our last board meeting of the year being our only in-person meeting, (we're in CO, so the added benefit of members bringing family and spending time on the slopes is huge 😉🙌🙋‍♀️). We've also offered to members who need it to count that travel toward their investment in our organization. Some have taken us up on that as well.” 

 

Courtney Bugler, Chief Development and Marketing Officer, Piedmont Park:  

“In organizations that have met in-person, we pay the expense for board members to travel. Often, those board members will waive that reimbursement — for which we’d give them a tax acknowledgement for their in-kind gift. Just as you pay the travel for staff, the assumption is that the organization should pay for the board. Whether they choose to not take you up on it is up to them. I haven’t been in the situation that would have a caregiver, but if it’s required, I would treat it the same way. 
 
“However, in this day and age, there’s a lot that can be done virtually — it usually garners greater attendance.” 

 

Robyn Mendez, industry veteran serving multiple nonprofits:  

“This question feels like it is masking a deeper, more important topic related to the role of a board and the relationship that board has to your organization. 
 
If there are notable financial requirements for board participation, does this limit who can sit on your board? I would argue financial requirements can negatively impact board diversity in terms of socioeconomics, gender, race, and age. 
 
If your board is really just there for financing, those things may not be so important to furthering your mission. (Actually, I don’t believe that at all. If your board is purely there for financing, you are running a 1980’s version of patriarchal nonprofit management that needs some attention.) 
 
So, what’s the true goal of your board retreat? Is it to help the board bond as a team and have some fun together? Is it to draft strategic plans? 
 
Could those goals be accomplished in ways that don’t require such a financial burden on the individual? 
 
Do the outputs of the retreat merit the holistic cost? In other words, if the whole retreat was coming out of the organization’s budget, would the same decisions be made? If the answer is yes, then quietly pay for the board member in a respectful way.” 

 

Maria Clark, EVP of Partnerships and Chief Evangelist, GoodUnited, and Former SVP, Relay For Life American Cancer Society:  

“I have seen organizations manage this in different ways, but it has evolved. Offering reimbursement after the meetings typically results in very few board members requesting payment. They accepted the role anticipating their ‘donation’ to the organization is inclusive of the cost of travel. If you have recruited the right board members, who are passionate and committed to your mission, this is not a barrier for their involvement, and the NPO understands the value of paying for travel when needed. A smart investment!” 

 

Jamie Bearse, President and Chief Executive Officer, ZERO Prostate Cancer  

“We have a policy that board members can submit for pre-approved travel expenses. Most do not submit. 
 
We also follow the Better Business Bureau standards for board meetings which call for at least three evenly spaced meetings with two in person. Video face-to-face counts as in-person.” 

 

Annette Bakker, President, Children’s Tumor Foundation:  

“We have a very strong board friendship. Board members pay their way, and if a board member needs help, the other board members jump in. A team feeling I am really proud of! I feel very strongly about board members bringing two of three Ts (Talent, Treasure, and Time).” 

 

Mary Wheatley, Chief Executive Officer, National Scleroderma Foundation: 

“Our board members are responsible for their own travel expenses; however, we coordinate arrangements. They are eligible for reimbursements per our travel policy, but most do not request it and consider their coverage an in-kind donation.” 

 

Sean Kramer is currently serving as a Managing Director at Carter, but with rich history inside social good leadership as CEO of Diabetes Research Institute Foundation and SVP/CDO of the Parkinson’s Foundation: 

“[The expense of board service] was always at the board member's own expense. We would consider it part of their give/get. If the board member does not have the resources to afford travel, they’re probably not the right board member. Board meetings [in response to the pandemic] went from fully in-person to completely virtual and are now hybrid. We have two meetings virtually and one in-person.”