For a huge chunk of non-profits, the non-profit work is the labor of their members. Their goal is not and has never been to pass revenue through to the community - what would that even look like for a hospital? There's a million different examples here.

Directors of non-profits that have enough money for this to matter are doing this as a full time job - are we going to eliminate every competent director from working here if they can't afford to stop getting compensated for their work?

Your suggestion would cripple non-profits doing all sorts of important and beneficial work.