ABSTRACT
The debate on board compensation in tax-exempt foundations opposes a more recent business-like mentality to a traditionally voluntary spirit model. On these premises, we outline the pros and cons on both sides of the continuum after presenting new developments in Swiss civil law and tax practices. Given these developments, we argue in favor of a unified regulatory system for board compensation. While recognizing that most foundations are not compensating their board members, nor would they will be able to do so, we contend that voluntary work should be encouraged. Still, compensation could be tolerated under three conditions: it must remain modest and follow an independent decision-making process that should be thoroughly documented.
