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| Re: grantwriting and salary confidentiality
Posted by carl   on 9/10/2008, 2:31 pm, in reply to "grantwriting and salary confidentiality"
VIP Poster
Hi,
You're right and your bookkeeper is right. The salaries of individuals in your corporation are confidential. You need to know levels of compensation to justify grants and for practical reasons the salaries of your organization must be held confidential. (I don't think this is mandated by state law, but you can find out if its true by going on your state's statutes website or reading through the Secretary of State's website.)
Your ED and bookkeeper should furnish you with salary levels. Thus your budget narratives would say, "a program director in the State of Mississippi is usually compensated in a range between $35,000 and $45,000."
The public disclosure rules for corporate records vary from state to state, but I've not heard of any state that requires detailed disclosure of salaries from nonprofits. Municipal government records, state government records, federal government records and certain quasi-government records are public property because these are supported by tax payer money. The IRS does not require that financial records be available for review -- the IRS requires that nonprofits file for review specific information relative to private inurement, public support, asset distribution, and financial position. The salaries of only those individuals compensated in amounts over $50,000 are included to defend against private inurement.
State law, however, varies from state to state regarding public disclosure.
I do not see how knowing the salaries of specific individuals in your organization are required to justify budgets of funding proposals. Most development officers do not require and are not allowed access to this highly specific, highly sensitive information. Most CEOs do not allow that information to go below the Senior Staff level.
Hope this helps,
Carl
Richardson Development
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