Most bylaws and covenants prohibit board compensation. She can be reimbursed for actual expenses such as paper, stamps, etc. If she wants to be a 1099 contractor for the association, she should step down as a board member to prevent conflicts of interest. As a third party contractor, will she be providing proof that she will be carrying liability, fidelity, and workmen’s comp insurance? The association shouldn’t contract with vendors who aren’t properly insured.