This document discusses how an executive search firm can benefit tax exempt organizations.

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EXECUTIVE SEARCH
Working with Search Committees
o Select members who have time, influence and a stake in outcomes
o Evaluate search partners and internal/volunteer capabilities
o Communicate effectively both internally and externally
o Outline a search process and timeline early
The Search Process
o Involve stakeholders in specifications creation
o Actively recruit rather than “post and pray”
o Candidate recruitment strategies:
 Networking
 Public Announcements
 Associations/Trade Groups
 Social Media
 Cold Calling
Candidate Evaluation
o Resume review
o Screening calls
o In-person interviews
Due Diligence
o Background Investigations
o References – Provided and “back door”
o Assessments
EXECUTIVE COMPENSATION AND INTERMEDIATE SANCTIONS
Intermediate Sanctions
o IRS is questioning excessive compensation for non-profit executives
o Non-profit organizations must pay “Fair Market Value” to disqualified person(s)
o Violations (even inadvertent) can lead to embarrassment and personal liability
Protecting the Organization
o Compensation is presumed reasonable if:
 Compensation arrangement is approved in advance by an independent
authorized body
 Authorized body obtained and relied upon appropriate data prior to making a
determination
 Authorized body concurrently and adequately documented the basis for
making determination of compensation
CONTACTS
Angie Salmon, EFL Associates  913-234-1576  asalmon@eflassociates.com
Amber Duncan, CBIZ Compensation Consulting  800-844-4510 x295  alduncan@cbiz.com
Executive Search & Compensation in Tax Exempt Organizations