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Nonprofit Law/Executive Director

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Question
Is the Executive Director of a 501(c)(3) entity considered an officer and hence should be classified as an employee or can they be classified as an independent contractor?
Is their any official guidance that states how the Executive Director should be treated?

Answer
The IRS explains at
http://www.irs.gov/charities/article/0,,id=131083,00.html
--- Start of Excerpt ---
An exempt organization (EO) may have officers such as a
president, vice-president, secretary, treasurer, executive
director, and CEO (chief executive officer).  As used here, the
term officer includes anyone who holds a position of trust,
authority, or command within an organization.

The Internal Revenue Code defines corporate officers as employees
for FICA, FUTA, and FITW purposes.  However, an officer of a
corporation who does not perform any services or performs only
minor services and who neither receives nor is entitled to
receive, directly or indirectly, any remuneration, is not an
employee of the corporation.
---End of Excerpt---

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic

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I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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