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Human Resources & Executive Search Consultant | Instructor at Harvard Extension School and Cornell

News for Massachusetts-based nonprofits and nonprofit board members from the Massachusetts Nonprofit Network! Nonprofit board members may now receive a stipend of up to $500 without losing statutory protections; annual gross support and revenue thresholds for charities submitting financial statements raised to $500,000 for reviewed statements and $1,000,000 for audited statements. BOSTON – In an effort to encourage job creation and growth in Massachusetts, the Legislature recently passed, and Governor Healey signed, H5100, an Act relative to strengthening Massachusetts’ economic leadership. This legislation encourages representation on boards by allowing a small stipend for board volunteers, and supports nonprofits through updated requirement thresholds. Nonprofit board members may now receive a stipend up to $500 for their time and efforts related to board service without losing state statutory civil liability protections. Previously, if a nonprofit board member received compensation, they would not be entitled to the personal civil liability protections afforded by Massachusetts General Law Chapter 231 Section 85W. This change was proposed by the Massachusetts Nonprofit Network (MNN), and is in line with the Federal Volunteer Protection Act, which provides similar protections for nonprofit volunteers so long as they are not compensated more than $500. “Allowing board members to receive a modest stipend for their time and effort will do a great deal to advance equity and representation for nonprofits and the people they serve,” said MNN’s CEO, Jim Klocke. “This provision enables nonprofits with smaller budgets to encourage board participation from individuals who may not otherwise be able to serve because of financial constraints. MNN hopes that with the allowance of a stipend, nonprofit boards will gain valuable voices and improve board representation.” Additionally, Massachusetts raised the thresholds for requiring nonprofits to submit reviewed or audited financial statements. Now, organizations that have gross support and revenue of more than $500,000 in a fiscal year (compared to $200,000 previously) must submit financial statements that have been reviewed or audited by an independent certified public accountant (CPA). Whether the statements must be audited or reviewed now depends on whether the gross support and revenue exceeds $1,000,0000 (compared to $500,000) in that year, with audits required for those with $1 million or more. “MNN applauds the Legislature for recognizing the need to raise the thresholds, as they were last updated in 2008,” said Klocke. “Inflation and rising costs are straining nonprofits. This legislation alleviates a costly requirement and will have a real and important impact on smaller to medium-sized nonprofits.” Please use the Massachusetts Nonprofit Network as a resource for support as these changes are implemented. #massachusetts #nonprofits #nonprofitboard #nonprofitleadership #nonprofitnews #equity

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