IRS Provides Interim Guidance On Pension Act Provisions
Standards given for foundation grants to SOs, applicability dates, disaster relief funds, and scholarships
Articles
New Form 990 Offers Greater Chance To Promote Program Accomplishments
Charities would do well to review tax return from the point of view of prospective donors before filing
IRS Explains Common Mistakes on Form 990
As returns become instantly available online, more standardized and reliable data will help the public compare organizations to see if contributions are being used effectively
Form 990 Offers a Public Relations Opportunity
Charities can utilize tax return to showcase programs and avoid embarrassment if they take the reader’s perspective
Tax Exempts Must Provide Applications, Returns
Public has right to same-day access upon request at office; organizations may satisfy obligation by placing information on the Internet
Top Ten Policies and Practices for Nonprofit Organizations
Increased emphasis on transparency and accountability requires more formal attention to governance and administration
Indictment Spells Out Claims of Benefit, Obstruction of Justice by State Senator
Grants outside service area, improper political activity, and misinformation to accountants are basis for criminal charges
The Key Question: Whose Organization Is It?
Nonprofits come in many different shapes and sizes; they will be more effective if their governing instruments reflect the constituencies which must be represented to make them work
Directors Often Fear Risks of Personal Liability
Board members face potential liability for their own actions in causing injury to others, or in breaching a fiduciary duty to the organization.
Boards Should Assess Their Own Performance
Assessment can help improve board performance and transition ineffective members; the important thing is not worrying about doing it perfectly, but just doing it
Conflict of Interest Policies Help Avoid Problems
In addition to protecting against embarrassment and loss of contributions, policies can provide protection against possible excess benefits tax violations
Charities Consider Role for Audit Committee
Although Sarbanes-Oxley rules apply only to publicly traded businesses, nonprofits are beginning to look to its standards for "best practice" guidelines.
Term Limits Are For Cowards
Arbitrary end of service assures that organizations lose some of their best talent
Boards Should Build Diversity For Maximum Performance
Varied perspectives can improve fundamental management decisions
Preparing Minutes of Board Meetings Is Usually More Art Than Science
Minutes document formal Board actions and provide collective journal of corporate history
Charities Often Restructure to Protect Corporate Assets
Creation of a separate foundation to hold reserve assets provides protection and flexibility for new programs
How to Prevent Piercing the Corporate Veil
Courts have frequently permitted creditors to impose liability on a parent organization for actions of a subsidiary when "fairness" requires the disregard of separate entities.
LLCs Becoming Entity of Choice for Subsidiaries
Single member limited liability companies, as "disregarded entities," have instant exemption; joint venture LLCs may qualify if all members are charities
The Lawyer on the Board: Playing a Dual Role
Both parties should understand the ethical limitations on the attorney’s conduct when wearing two hats in board deliberations.
Barnes Audit Shows Board Failure to Act
Report shows personal acrimony, failure to follow approved policies, And failure to exercise basic oversight responsibilities in many years