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Home | Business Formations | Nonprofits
Nonprofits FAQs

Can the board of directors be related?

The IRS wants to ensure that the control of the Nonprofit is held by individuals focused on public benefit. According to the IRS, related directors, or those with common business interests (i.e., they own a business together), cannot make a disinterested vote.

Even if related directors are unpaid, the IRS may still ask the Nonprofit to revise the board to people who are unrelated.

To learn more and speak with a representative, please call us at (888) 381-8758.