HUSBAND AND WIFE STARTING A NON PROFIT

I have a non profit organization called the Birth Fathers' Support Network, inc. I would like to know if a husband in a non profit org. is a principle in the organization, can his wife work in the organization and have a salary also? I have heard that some funders may not fund you if your spouse works in the organization. I would like to know is there a way that we can get around this without sacrificing any funding? If so, How? I am desperate to find out this information. Thank you for your time.

I finally found the concept you were talking about(but I was unable to find any info towards a solution):

<:LINEBREAK:>A factor in cases of personal benefit which is sometimes overlooked is the connection between the organization and the family of its founder or chief officer. The danger of personal benefit is particularly high where the spouse and children of the founder or chief officer also are employed by a nonprofit organization. Such family members are rarely hired by the organization based on qualifications or on an equal par with other applicants. They are often hired to work at the top of the organization hierarchy for a good salary without having to start at the bottom for low pay. When an organization allows this to happen, it invites trouble.

The chief danger in hiring the family members of the founder or chief officer is they will begin to view the organization as a family operation. The family owned and operated business is a cherished way of doing business based on historical examples. However, a nonprofit organization is neither capable of being owned nor is primarily a business enterprise. Family members in key positions of organization control will unavoidably tend to feel like they own the organization, even though they do not. They will then act consistent with this feeling even though it is inappropriate.

The family business approach to managing an organization is well suited to a profit corporation, but is totally inconsistent with nonprofit status. The essence of accountability is independence. A board of directors must be independent from management to hold it accountable. Members must be independent from the board to hold it accountable. Family control usually works against independence, though. Family control of an organization usually results in significant overlap in the people serving as members, directors and managers. Thus, the people whose job it is to hold the organization accountable are the ones who benefit the most from a lack of accountability.

<:LINEBREAK:>You may want to check out www.nolo.com/lawcenter/nonprofit corporations

TechSoup's Funding and Grants section has some resources that may be of help to you also.

- Sean

I agree that it would look bad ethically. Volunteering would be fine!