BOARD MEMBERS GET PAID OR HOLIDAY BONUSES FOR SERVING ON THE
Lanier Coulter, Esq.
November 27, 2013
It is officially the holiday season! The year is coming to and,
and for many boards of directors, it marks the end of a long,
busy year. Too often
homeowners forget that serving on the board of directors is, in
most cases, purely a voluntary position, often times performed
on top of having a full-time paying job. After working so hard,
surely directors and officers serving on a board of directors
deserve a little extra bonus, right?
Or perhaps even a small salary for the services
Whether or not an
officer or director can get paid for his or her services will
depend on the governing documents for the community.
Most, if not all, community associations in the State of
Georgia are non-profit corporations.
The Georgia law governing non-profit corporations states
that officers and directors may not be compensated unless
otherwise allowed for by the corporation's bylaws.
In most cases, the bylaws for an association will not
allow for compensation of officers and directors.
Some bylaws will allow for officers and directors to be
reimbursed for minor expenses.
Other bylaws will specify that small tokens of
appreciation or food for board meetings shall not be considered
the prevailing standard for most associations is that officers
and directors shall not be compensated.
It is important to
check your bylaws prior to allowing for any type of compensation
or holiday bonus being paid for out of association funds.
Even a small token of appreciation that is paid for out
of association funds can be considered a form of compensation
and in violation of Georgia law unless the bylaws for the
association permit otherwise.
Of course, voluntary gifts from the membership are