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Pennsylvania House of Representatives
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: January 7, 2019 11:17 AM
From: Representative Anthony M. DeLuca
To: All House members
Subject: Prohibition of Nonprofit Board Compensation
To compensate directors of nonprofit organizations does not make sense. Paying them can hurt their objectivity, unduly increase the risk for a conflict of interest, and harm the public image of the nonprofit. Compensation of board members ultimately diverts scant resources meant for the mission of the nonprofit as well.

Further, with many Pennsylvanians struggling to make ends meet, it is difficult for them to accept a rationale for compensating these board members. They see that these organizations already enjoy significant tax and other benefits due to their charitable status. To hear of board members receiving generous salaries makes them angry.

Overall, compensating board members of nonprofit organizations just looks bad and undermines the organization’s credibility.

Under the proposed law, a director may not receive compensation for services as a director of a nonprofit organization; a hospital plan corporation may not provide compensation to an independent officer, director or trustee for services as an independent officer, director or trustee; and a general medical service corporation may not provide compensation to a director for services as a director.

Last session this was HB 340.

Please add yourself as a cosponsor of this legislation to ensure nonprofits operate as true nonprofits. Thank you.

Introduced as HB640