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gracie
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bullet Posted: 11/09/07 at 12:41pm

I found the following information on a prominent legal website, legalzoom.com:

 

Non-Profits FAQs

Can the board of directors be related?
 
The IRS wants to ensure the control of the non-profit consists of people from the public. 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 non-profit to revise the board to people who are unrelated.

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