Should not-for-profit boards pay their directors?

It’s a question I get asked a lot.

With the rising cost of living, have times changed? Are our boards truly diverse if members can only participate when they can afford to volunteer? Or are we unintentionally becoming a group of privileged people sitting around big tables, while others with valuable lived experience can’t afford to give their time?

I heard this recently from a volunteer director and it really stuck with me:

“I’m happy to volunteer my time — but paying for the privilege is a bit rich.”

It’s a fair point,  and it raises some important questions for every board:

• Should we offer director fees, honorariums, or just reimburse expenses so people aren’t out-of-pocket?

• Would paying directors help attract and retain the right skills?

• Could it improve diversity and inclusion?

• How might cost-of-living pressures be affecting who can serve?

• How would funders and stakeholders perceive paid roles?

• And, importantly, can we afford it without taking away from our mission or creating an admin headache?

These are just some of the questions,  there are many more about personal risk, sector expectations, and even the culture of volunteering itself.
Do our directors actually want to be paid? And could payment change the culture, expectations, or level of commitment around the board table?

Do you need to have this discussion around your board table?

Do you need help to facilitate it? 

Because when it comes to money and governance,  things can get tricky.

But asking the question, and having the conversation, is the important part.