Louis E. Michelson, A Professional Corporation

Pop quiz on governance for nonprofits:

Question 1.  Are each of your Board members provided with a copy of the final Form 990 before that form is filed with the IRS?

Question 2.  What if the nonprofit notifies each of the Board members that the Form 990 is available on request.  Does this procedure accomplish the same result as the procedure in Question 1?

Question 3.  Does it matter which procedure is followed when one is completing the governance question on Part VI, line 11 of Form 990?

Answers:

Answer to Question 1:  The 2011 Instructions to Form 990 clarified that in order to answer yes the governance question on Part VI, line 11 of Form 990 they need to acutally provide a copy of Form 990 to all of the governing board members or e-mail a link to the Form 990.

Answer to Question 2.  No.  If the organization only notifies the Board members that the form is available, the instructions for 2011 clarified that the organization should answer no.  A different result than the procedure in Question 1.

Answer to Question 3.  Yes it matters.  See IRS Instructions for Form 990 at the following link.