The majority of the board members of a charitable organization should be independent. Two-thirds of them should be independent and they shall not be entitled to compensation, receive any financial benefits, and should not be related to anyone one in the organization who does.
-All members must have loyalty to the company and put the organization’s interests above their own.
-Pushing for a nepotism policy will help elude favoritism among the board members.
LEGAL AND COMPLIANCE ISSUES
-IRS Form 990 asks how many of the board members that are independent.
-The IRS defines what independent board member is.
-A few state laws set a minimum number for independent board members.