Louis E. Michelson, A Professional Corporation

Providing Legal and Tax Advisory Services to Nonprofit Organizations

Nonprofit Governance

Charity Governance During the COVID-19 Pandemic

The Attorney General’s Charitable Trusts Section created a new publication: “Charity Governance During the COVID-19 Pandemic.” This publication’s goal is to inform nonprofit corporations of the California laws that allow them to fulfill some of their governance obligations remotely to adhere to social distancing requirements.  For balance of post see following link.

Non-Profit Governance

The following is a link to a pdf of a powerpoint on this topic:

● Board Governance Best Practices for Non-Profits: see the following link.

Governance 101:  Providing Form 990 to Board Members

Are each of your Board members provided with a copy of the final Form 990 before that form is filed with the IRS?  What if the nonprofit notifies each of the Board members that the Form 990 is available on request?  For balance of post see following link.

IRS FAQs on Governance – Form 990, Part VI

The IRS updated their Frequently Asked Questions and Tips (August 3, 2012) regarding Form 990, Part VI – Governance, Management and Disclosure.  Some of the FAQs have earlier posting dates.  For balance of post see the following link.

New Useful Resource:  Form 990 Policy Series Memoranda Now Available Online

The Form 990 Policy Series Memoranda, developed to respond to governance questions in the new Form 990, are now available online!  They can be accessed, without charge, at the web site of Public Counsel, the nation’s largest pro bono law firm.  For balance of post see the following link.

State Approval of Nonprofit Board Member Compensation.

The Massachusetts Senate on June 20, 2011 has passed a bill (H3516) that requires public charities to obtain state approval before compensating nonprofit board members.  For balance of post see the following link.

New IRS Check Sheet on Tax Exempt Organizations – Governance Practices

The IRS released a check sheet that IRS agents are instructed to use to capture data about the governance practices and the related internal controls of organizations under examination.  For balance of post see the following link.

One Size Does Not Fit All:  Governance and Management Policies

The new Form 990 (Part VI) contains a section on governance. Nonprofit managers and CPA have are increasingly focusing on the questions posed in the Form 990.   Part VI consists of three parts: composition of the organization’s governing body, its governance and management policies, and its disclosure practices. As is typical of an IRS form, there are two boxes, “yes” and “no,”one of which should be checked.  The goal of many is to be able to answer the questions “yes” (i.e. we have the policy) and move on to other matters.  For balance of post see the following link.