STUDENT DEFENSE INITIATIVE DIRECTOR COMPENSATION POLICY

ARTICLE I: PURPOSE

SECTION 1. This document outlines the compensation policy for Directors of the Student Defense Initiative (SDI). Having a written policy for the compensation of Directors helps avoid potential, actual, or perceived conflicts of interest. Additionally, this policy protects SDI’s nonprofit status and protects the Directors personally from sanctions. For example, Form 990 requires a description for the process of setting compensation of key employees.

ARTICLE II: COMPENSATION RATES

SECTION 1. DEFINITIONS. Compensation includes salary, bonuses, and benefits -- such as insurance, a car, housing allowance, or other fringe benefits -- that should be included in the calculation of total annual compensation. A list of what to include as compensation can be found in IRS Form 990 Instructions for Section A.

SECTION 2. RATES. It is the policy of the Student Defense Initiative that all Directors volunteer their time and efforts, and as such, receive no compensation, except to reimburse direct expenses of such service. Such expenses must be included in an approved budget or be approved separately by a majority vote of the Board of Directors.

ARTICLE III: CHANGES TO COMPENSATION

SECTION 1. PROCESS. Changes to this compensation policy may be made by a simple majority vote of the Board of Directors. Such changes shall not be effective until the start of the following fiscal year. This policy reduces the likelihood that conflicts of interest will arise and also allows for these changes in compensation to be reflected in the budget.

SECTION 2. The Board of Directors shall undertake a review process prior to changing this compensation policy. As described by the IRS in Form 990 and in the instructions for Form 990, the review process must include three elements:

1. review by an independent body, such as a compensation committee or the executive committee,
2. use of "comparability data," and
3. documentation -- usually through minutes of the meeting -- of the board's consideration and approval of the compensation.