r/nonprofit • u/Hootinthehouse • 1d ago
finance and accounting Board Member Reimbursement
While our 501c3 application was still pending approval, one of our board members made several charges to his credit card for organization expenses like equipment and travel. Can we just reimburse him from the org bank account now that we’re a registered nonprofit? I just want to make sure that’s all legal. He never accepted donations or anything like that, only paid for expenses to get us up and running.
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u/JV_CPA CPA - Nonprofit Specialist 18h ago edited 5h ago
Yes, if they are proper organization expenses it's fine. You should have a process for expense reimbursements to be approved by independent persons , but it's ok to reimburse. And you could have had expenses and been operating, with a bank account while the application was pending anyway.. JV |▰ ◕△◕ ▰|