Board memberships for a little income?

[RedmondStash]

A spin-off from another thread:

Has anyone ever gotten a board membership for a business, charity, etc., as a kind of side hustle that also has some productive value? It's an area I'm considering looking into, but I don't know much about time commitment, income, etc.

Thanks.

[mak1277]

If you're well connected I think it would be great.  It's not exactly something you can just apply for though.

AlsoI think charity board memberships are probably not cash-positive to the board members.  There's an implicit agreement that significant donations will be made by board members.

[partgypsy]

I don't think board members get money for what they do (at least the non-profits that I know of). It is like a volunteer position where you donate your time, money to it because you believe in that cause, and it elevates you in that community. Oftentimes board members are responsible for fundraising, so be comfortable with asking people for money.

https://www.thebalancesmb.com/can-nonprofits-pay-board-members-or-appoint-paid-staff-2502271

I don't know anything about being a board member for a business.

[Proud Foot]

The non-profit boards I am familiar with do not pay anything. They do reimburse costs to attend the board meetings (mileage, printing costs if you print materials). But they also have required donations to the organization/cause.

All the boards I have come across for private business have been comprised of a group of owners or close family members if it was a family business. Compensation for those depended upon the size and profitability of the business.

The big money comes from being on a board for a publicly traded company. But to get those you need years of high level executive work in that industry, affiliated with a major shareholder, or able to provide some advantageous political connection.

[Sibley]

Plus, it's actual work. Sometimes with legal liability attached.

[Fishindude]

Yep, I'm on the board of private company in my community, they recruited me about 15 years ago.   We are all well compensated and it makes a nice stipend to my annual income.  We have a monthly board meeting that takes 2-4 hours and maybe 2-6 other meetings per year, and quite a few emails, as necessary.   We make a lot of important decisions that affect the direction of the company, the shareholders, and the employees that work there, so it's serious business .   

There is definitely liability associated with being a director of a company, and the business keeps board of directors liability insurance for all of us.  I've enjoyed it and it has been real interesting to learn how a business completely different from my own operates.

Typically boards seek out new directors that will meet their needs to replace retiring directors.  Pretty tough to just walk into one of these jobs unless you are a very large shareholder in the business so you can strong arm your way in.

[AMandM]

I'm on the board of a nonprofit and we don't get paid. And since I have kids who benefit directly from the activities of the nonprofit I can't even deduct my donations to it.

[MrThatsDifferent]

I’ve thought about this and I think it is viable. Some non-profits do pay their board members. This is especially good for women as too many boards all look the same and their is a call for diversity, particularly with more female members.

[ROF Expat]

Most companies pay a lot of attention to placing members on their boards.  On nonprofit boards, members are generally expected to bring their own cash, fundraising contacts, and/or expertise, and they are generally unpaid.  For profit companies are usually looking for relevant expertise, contacts, or a prestigious (at least in their field) name.  And, as was pointed out before, being on a board brings potential liability.  Who pays for the liability insurance is significant. 


If you're a retired CEO, 4 Star General, or major stockholder, you will probably get a lot of approaches to be on boards, paid and unpaid.  For most of the rest of us, paid board opportunities are very rare.  If you dedicate a lot of time and effort to a local nonprofit, you might well be invited to be on the board, but the chances are it will be unpaid. 

[wbranch]

IME large, local non-profits are constantly looking for people that have time and expertise. Donating $ wasn't necessarily as big of a deal. Some will pay mileage and a small stipend for required meetings, but it won't come close to paying for your time.

I knew people on boards of privately held companies at my previous job. Ok amount of compensation and the time commitment wouldn't be too bad assuming you were partially retired. But it seemed like many of them still had a lot of other business interests keeping them busy. They were usually other business owners, bankers, CPAs, or attorneys that had business relationships throughout the community. We have a family friend that is in partial retirement and is on the board of couple medical device companies. It is well compensated but takes up a fair amount of time.

[RedmondStash]

Wow, this is all fascinating! Thanks for the info. I really didn't know much about boards before.

Today I learned. :)

[PiobStache]

The thought of wanting to get money from a non-profit for lay leadership as a side hustle is very off putting.  It's the exact opposite motivation one should have for becoming a non-profit board member.  My wife and I have been active lay leaders in our community for 20 years and plan to start a non-profit to help teach at risk/under privilege youth math skills when we retire.  If anyone expected a stipend they would hear only two things:  my laughter and the door closing on their way out.

[OtherJen]

In terms of time commitment, it depends. I've spent the last few hours figuratively trying to put out a financial/internal political fire in one of the non-profit organizations in which I serve as a board member. I have an early morning board meeting for another non-profit organization tomorrow (and a separate meeting on Monday for a committee). These are entirely unpaid volunteer positions in community organizations about which I feel very strongly. I imagine that greater time demands would be made if I were receiving compensation. I also feel that I would be less willing to put up with the headache if I didn't feel so strongly about the causes.

[Mississippi Mudstache]

I've served on two non-profit boards. No pay. Lots of time and effort. I'll decline any future invitations unless it's something that I want to be seriously involved with.

[SwordGuy]

In the USA, it's common for city and county governments to have boards of directors that oversee various departments and agencies.

Most are unpaid positions (no donations of money expected, just time).   A small number of them actually pay a small stipend. 

In my own community, there is very little competition for the unpaid ones.   Much more so for the paid ones.  (No surprise there!)

I will tell you, if you want to make a REAL difference in the quality of government in your community, volunteer for one of these boards.   It's a largely thankless job but a damned important one.   It's a way for a regular citizen to make an impact.

In NC, at least, many of the slots on the boards are reserved for people with specific qualifications.   For example, one slot might require a physician, another an accountant.  Another might require the person to have (or have had in the past) a drug problem, or be a relative one such a person, or be a community activist on that topic.   These requirements are so the known necessary points of view for a given agency have a representative that can speak from personal knowledge on that topic.

[RedmondStash]

I will tell you, if you want to make a REAL difference in the quality of government in your community, volunteer for one of these boards.   It's a largely thankless job but a damned important one.   It's a way for a regular citizen to make an impact.

Definitely food for thought. Thanks for the tip.

[seattlecyclone]

This thread got me wondering: do many people on public company boards also serve on non-profit boards? Could volunteering on a non-profit board and making a strong contribution help provide the necessary connections to get invited to join a for-profit board, or is that not really a thing that happens?

[Dicey]

I'm on the board of a nonprofit and we don't get paid. And since I have kids who benefit directly from the activities of the nonprofit I can't even deduct my donations to it.

Just thinking aloud here. Others with more knowledge are welcome to jump in.

Under these circumstances, would a Donor Advised Fund be a smart workaround? I'm guessing it might.

[RedmondStash]

OP here -- this has all been so helpful, folks, thanks very much for your thoughts.

It's a great thing to do for fulfillment and other return - investing in others - especially if you're FI or have time to take it on without worrying about financial return. 

I'm looking for both fulfillment and options to make a little extra cash, but not necessarily in the same place. For the right nonprofit, I would happily volunteer my time, to do something productive and get out of the house.

I really just had no idea about how boards worked before. This forum really is a font of great and useful info.

Thanks again, everyone.