In recent years, the IRS has made several revisions to its Form 990, the tax return for tax-exempt organizations. These changes focus on obtaining additional information that help organizations become more transparent to both the IRS and the general public. However, these changes also mean increased responsibilities for the trustees of these organizations.
If you are a trustee to a tax exempt organization, some of the actions you’re now required to take include:
- – reviewing and approving the organization’s 990 prior to filing it with the IRS;
- – reviewing and approving reasonable compensation packages for executives. Trustees must provide in writing how the compensation for executives was determined, including information about compensation packages paid for comparable positions.
- – Approval of governance policies regarding such issues as conflicts of interest, whistleblowers and the organization’s policy on document retention and destruction.