GaryK - 5:50 am on Aug 12, 2012 (gmt 0)
I've given my moderators free domain hosting as long as it's not really active site.
I do something similar for my forum moderators and administrators; I'll pay for any domain name they want, along with full web, e-mail, ftp, etc. hosting.
Additionally, whenever we're selling site-branded merchandise the admins & mods get one for free.
Both are inexpensive ways to make the people I rely on to keep my forums running smoothly know that they're appreciated.
How do you guys handle assigning moderators?
I like to pick valued, long-term members of the community. People who are respected by the members they're being asked to help supervise. People who have demonstrated an ability to be adversarial without being personally disagreeable. Someone who can respond in a friendly and professionally way when challenged about anything, but especially when angrily told to [expletive deleted] off about something by a member or guest!
Those kinds of people aren't always available on-demand, so even if a new moderator isn't needed I'll still find a way to add one when the right kind of person comes along.