Paying EmployeesNonprofit employees can (and should) be fairly compensated for their work with an appropriate, competitive salary. The key takeaway related to paying employees is to avoid excesses. We need happy, well-paid employees to facilitate the delivery of our charitable mission. But our employees don’t usually need a first class plane ticket for their business trip. The difference is pretty clear, right?Selecting Vendors & Paying ExpensesThe key to understanding private benefit as related to vendors and expenses lies in the concept of fair market value. The Make a Difference Movement Foundation, Difference 38 and Chance for Chance will need to pay for expenses in order to host a fundraising event or run our charitable programming, and this is totally acceptable under the law. The only caveat is that we must spend our charitable funds responsibly, ensuring that we are paying at or below fair market value for any expense. How do we ensure we’re making a purchase at fair market value? Our best practice is to get at least three quotes (in writing) from different vendors to confirm that we’re getting the best deal. This is often called getting an RFP (request for proposal).Relationships With Other Individuals and BusinessesThe concept here is that because Difference 38 and Change for Chance, being a 501(c)(3), is a public charity (that serves the public’s benefit), 501(c)(3)s can’t endorse, promote, or generate revenue for a private gain. Even though these activities may seem harmless (like linking to a vendor page selling products) this rule ensures that nonprofits are focused on the greater good rather than supporting or endorsing specific individuals or businesses.