Traditionally, service on the Board of Directors for a community association has been carried out on a completely volunteer basis, with the Board members’ only reward being the sense of fulfillment they receive from knowing that they are providing a valuable service to their community. But increasingly, some community associations are finding that this altruistic reward is not enough to keep the open spots on their Boards filled. For such associations, the question of whether it is permissible to offer compensation to Board members for their service may understandably arise.
There is no law in Georgia that prohibits a member of a Board of Directors of a non-profit corporation to be compensated for his or her service. That said, the By-laws of most community associations do prohibit the Directors from receiving any form of compensation for their service or only permit it if it is approved by a majority of all of the members. Notably, for the purposes of By-laws provisions governing Board member compensation, the term “compensation” means not only a cash payment for service, but any form of compensation at all, including a waiver of assessments.