Your auditor asked for compensation documentation. Generate it in minutes.

Evidence that the board used comparability data, made an independent decision, and documented both the data considered and the basis for the final figure. Should be recorded in board minutes contemporaneous with the decision.

A comparability study analyzes compensation at similar organizations. While no legal requirement to hire a consultant, the IRS rebuttable presumption requires appropriate comparability data. ExemptPay provides this from IRS filings.

Best practice is annual review, ideally before fiscal year start. The full board or a designated compensation committee of independent members should formally approve. Organizations that maintain a current benchmark report on file can respond immediately when auditors, donors, or board members raise questions — rather than scrambling to produce documentation after the fact.

Comparability data reviewed, compensation elements considered, board's rationale, conflicts of interest noted, and voting members' names. ExemptPay's report provides language structured for this purpose.