Exempt Organizations: Who Is a Statutory Non-Employee?

 

Directors of a corporation - members of the governing board - are defined by statute as non-employees. If an exempt organization pays its board members to attend board meetings or otherwise compensates them for performing their duties as directors, the organization should treat them as independent contractors.  (The director fee is reported on Form 1099-NEC.)  This is the most common type of statutory non-employee that may be involved in an exempt organization.