Question

Submitted by forrestfriends on 21 March 2012 - 1:32am

If a community organisation is registered as a charity under what conditions can a director get money from that company. I have no knowledge of these issues but my reading of our companie's memorandum and articles of association lead me to believe that apart from out of pocket expenses it contravenes charitable status if a dierctor accepts payment for services he renders to the company. Any thoughts or suggestion welcome. Thanks

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Comments

Thanks for your question.The

by paulmeade - 21 Mar 2012 - 1:05pm

Thanks for your question.

The basic position is that, no, directors of charities cannot be paid for being a director/trustee. However, a charity can make a payment to a trustee for doing pre-agreed work that is not related to their function as a trustee, so long as all the trustees agree that it is in the best interest of the charity for a trusteee to do that particular job of work for them (not in the capacity of an employee obviously).

I hope that helps!

Paul