Unless there is specific legislation or a funder's contract
prohibiting it, the answer is yes. Paying a director or a volunteer
for expenses is proper. The non-profit is not making income available
to its member-as-an-investor by simply paying the costs of carrying
on its activities. Care should be taken, however, in paying per
diem payments and honoraria. Any fixed payments should be reasonable
and related to the actual expenses involved. Contact Revenue
Canada if there is any doubt.
