Yes, but the IRS discourages it. According to IRS Treasury Regulation 53.4958-6, 'charities should generally not compensate persons for service on the board of directors except to reimburse direct expenses of such service.' However, nonprofits may reimburse board members for reasonable expenses incurred while serving on the board. For example, a nonprofit may reimburse board members for necessary and reasonable travel or for purchasing items to be used by the nonprofit. In addition, the IRS does not prohibit nonprofits from paying board members. The IRS publishes guidance for those that choose to do so. Nonprofits that pay their directors usually do so because the nonprofit has significant assets to manage and needs the specialized expertise and time commitments of their directors. However, before paying board members, a nonprofit must consider some factors. First, most nonprofits simply do not have extra income to afford to pay board members. Second, community and donor perceptions are important. Paying more than a nominal 'honorarium' can result in negative feedback from the community and donors. Third, some states, such as California, limit how many board members may be paid. Finally, paying board members can create a conflict of interest. This means a board member may be less likely to challenge a bad decision because the board member wants to stay on the board and continue to receive payment.