To reimburse or not to reimburse? Rethinking board expenses from an equity lens.

Here’s the story: 

"I serve on the board of a provincial organization that requires frequent travel. Our bylaws state that board directors “must be reimbursed for all necessary and reasonable costs” related to board work. But with two required events coming up in the next few months, the board has decided that, despite our bylaws, travel costs for directors won't be reimbursed. 

For me, attending these multi-day events will cost close to two month’s rent! I’m deeply committed to this organization and I don’t want to resign from the board. But the cost of showing up has become unsustainable, and I don’t think it's fair to expect volunteers to have to incur such large expenses. How can I push for compliance with our bylaws? And what are your thoughts on reimbursing board expenses?"             

Here’s my take:

I think the simple, albeit unsatisfactory solution to your problem is: Don’t go to the events. No volunteer role is worth financial stress or harm. Send an email to your board, let them know that the cost is a barrier to your participation, and wish them well on their travels.  

You say the events are ‘required’ but what does that mean exactly? Will you be removed from the board if you don’t go? Probably not (and anyway, that would require a good read through of the bylaws!). Besides missing out on the events (Which sucks! I’m sorry you’re in this situation!), I bet the worst that will happen is a passive-aggressive response to your email. Don’t let it get to you. Sometimes boards need to experience the consequences of their decisions - after all, that’s a big part of accountability. 

So that means your personal budget is unaffected, but what about the bigger issues here? How can you ensure your board is in compliance with your bylaws? What is a reasonable approach to reimbursement for directors? And what needs to happen to get your board operating in an equitable way?

I recommend waiting until your next board meeting to raise these issues. Grab some space on the agenda, and share your concerns. Bylaw compliance matters, but centering equity in your board’s reimbursement policy is where you can make the biggest difference, for yourself and for future board members.

Bylaws, boards and the compliance dance

If your bylaws say that directors must be reimbursed, the board is arguably not in compliance. But interpreting bylaws can be tricky, and a comprehensive approach that reviews the full document, governing legislation, and supporting policies is best.

The reality is that lots of boards drift out of compliance with bylaws. Often it’s minor stuff like listing a standing committee that no longer exists, but sometimes noncompliance issues can have more of a material impact, which tends to be more of a concern. 

Now might be a good time to propose a bylaw review and compliance risk assessment, especially if this isn’t the only area where practice has drifted from policy. That creates a productive frame for the conversation, making the work about the board’s overall accountability rather than this one specific (and potentially contentious) issue. 

That said, don’t pin all your hopes on the bylaws. The most likely outcome of this process is for your board to simply amend the language, from must to may, giving them the discretion they’re already exercising. That’s okay! In fact, many boards find it more effective to manage reimbursement through policy rather than bylaws, because it allows for more flexibility, transparency, and better alignment with the organization’s financial and equity goals.

Developing a reimbursement policy for board directors

I’m curious what policy and process your board has built around reimbursements for board directors. How has eligibility for reimbursement been handled in the past? What is the process for claiming expenses? How does the organization budget for these expenses each year? 

Whether you’re reviewing the existing policy, or developing a new one, you’ll want to ensure that your organization has some enabling infrastructure for managing reimbursement. A strong policy should:

• State the purpose and principles behind the board’s approach to reimbursement 
• Define eligibility criteria, and what’s covered
• Clarifies where discretion is needed in the process, who exercises that discretion, and how to ensure decisions are fair and consistent
• Align with related governance and financial policies, as well as organizational values
• Include a process for claims, approvals, reviews and resolving disputes 

The board should also establish a policy that clarifies how events are labeled as “required”, and make reimbursement the default for those events. If the organization can’t cover the cost, the event shouldn’t be considered required.

Integrating Financial Capacity into Reimbursement Decisions

I’m willing to bet that the board’s decision to change their approach to reimbursement is related to financial concerns. Many organizations are facing financial strain and uncertainty, and I’m guessing the cost of these events just didn’t make it into the budget. 

Managing discretion over reimbursements through policy, rather than the bylaws, allows more flexibility for the board to integrate fiscal responsibility into reimbursement decisions. Your reimbursement policy should consider the organization’s current financial capacity in determining eligibility. This can be managed in different ways: approval processes, set annual reimbursement caps, or requiring pre-approval for higher-cost expenses. 

Why Reimbursement Is an Equity Issue 

For me, one of the central concerns in your story is about equity. Across the sector, we have a huge blindspot when it comes to understanding how class shapes governance spaces. Too many boards operate on the unspoken assumption that all directors can self-fund their participation. That might be true for some directors, but for many others, it’s a silent barrier. And it disproportionately affects the very people nonprofits say they want on their boards: younger leaders, racialized folks, people from working-class or marginalized communities.

Expecting significant financial commitments from board directors is a major barrier to advancing EDI goals. Actually, I would go so far to say that expecting any financial commitment from board directors is an equity barrier (this has proven to be one of my less popular opinions, but I stand by it). If boards are serious about EDI, we need to design governance systems that remove barriers, not reinforce them.

For your board in particular, I think there are real equity concerns related to ‘required’ events (in addition to the financial implications, the time commitment to attend several multi-day events is a huge barrier!). And removing the possibility of reimbursement for expenses compounds that inequity. When your board reviews or develops its reimbursement policy, I recommend including an overt DEI lens in that work, and I think it might be helpful to extend that lens to other governance policies and practices.

Final Thoughts: You Shouldn’t Have to Pay to Volunteer

Let’s be clear: it’s unreasonable to ask volunteers to spend thousands of dollars to participate — and it’s equally unreasonable to expect them to attend multiple multi-day events without support. If your board is doing this, it’s time to take action. Start by flagging the compliance issue and revisiting your bylaws. Then, build or revise your reimbursement policy to ensure it aligns with your organization’s values and financial realities. Most importantly, apply a real equity lens to all governance decisions — because financial barriers are equity barriers, and inclusive governance means creating conditions where everyone can fully participate.

Big Takeaways

• It’s unreasonable to expect volunteers to pay to govern. Board service is already a significant time commitment; expecting directors to also shoulder thousands of dollars in costs is unsustainable and unfair.
• Bylaws matter, but policy is where you have leverage. Bylaws set the foundation, but well-designed, equity-informed policies are where expectations are clarified, discretion is managed, and sustainable practices are built.
• Board reimbursement is an equity issue. When boards fail to cover costs for directors, it creates a barrier to participation that impacts equity, diversity and inclusion in governance.