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What You Need to Know:
The IRS recently published exempt organizations training materials addressing nonprofit governance, which can be found at http://www.irs.gov/charities/article/0,,id=208454,00.html. The materials provide nonprofit governance instruction to IRS examination agents, determination specialists, tax law specialists and managers on the elements of nonprofit governance and how it relates to an organization’s tax-exempt status. The training materials are another step in the IRS’s long-term plan to study the link between nonprofit governance and tax law compliance.
The IRS announced six areas of interest in the governance training materials:
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An active and engaged board of directors
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An appropriately sized board of directors
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A board comprised primarily of independent board members
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A board that understands the organization’s programs, people and resources
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Documentation of board meetings
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Implementation of policies and procedures
The training materials focus on public charities and are intended to provide more uniformity among agents at the audit level and the initial determination level. The IRS acknowledges “one size does not fit all” when it comes to nonprofit governance and that it is not the job of the IRS to determine an organization’s “governance, structure, policies or practices, or to make decisions for them.”
For more information on the training materials and their implications, click here.
About our Nonprofit Organizations Practice Group
Polsinelli Shughart PC has responded to the ever-expanding and complex needs of nonprofit organizations by forming a highly specialized multidisciplinary group with a dedicated focus. Using a pragmatic approach with outstanding technical knowledge, the Nonprofit Organizations Group is one of the first of its kind in the Midwest and nationally.
To learn more about our services for nonprofit organizations,
click here.
About Polsinelli Shughart PC
With more than 480 attorneys, Polsinelli Shughart PC is a national law firm that is a recognized leader in the areas of business litigation, financial services, real estate, business law, labor and employment, construction, life sciences and health care. Serving corporate, institutional and individual clients regionally, nationally and worldwide, Polsinelli Shughart is known for successfully applying forward-thinking strategies for both straightforward and complex legal matters. Information about the firm can be found online at www.polsinelli.com. |
