Form 990 Nonprofit Tax Compliance and Governance Explored
The redesigned Form 990 reflects IRS’ stepped up regulations on nonprofits’ corporate governance. The revised form has added numerous questions to identify activities and transactions which may affect their tax-exempt status and the possibility for their board/management to be subject to possible sanctions. It is therefore essential that nonprofits and their advisors be in the know with respect to recent nonprofit tax compliance and governance and Form 990 issues to avoid potential pitfalls.The Knowledge Group is assembling a panel of distinguished experts to provide an in-depth discussion on how nonprofits can comply with the complicated tax reporting requirements and how to formulate governance policies to help them maintain their nonprofit status and be able to properly answer the questions required on Form 990. Speakers will address the key issues in the mix including:
- Overview of the Revised Form 990
- Implications of the Revised Form 990 to Corporate Governance and Executive Compensation
- Guidelines and Best Practices in Implementing Governance Policies and Procedures
- Tax Reporting Compliance
- Political Activities
- And Up-to-the-Minute Regulatory Updates
A LIVE interaction with the audience in a question and answer format is also included in this event
Seth Perlman , Senior Partner,
Perlman & Perlman, LLP
- Nonprofit Governance Basics
- Federal and State Legal Regimes
- Duties of Nonprofit Directors
- Governance and Conflict of Interest Best Practices
- BBB Wise Giving Alliance – Standards of Accountability
- Independent Sector – Principles of Self Regulation
- Governance reporting disclosures required on the IRS Form 990
- Independence of Board Members
- Board Size
- Disclosures of Material Diversion of Assets
- Documentation of Meetings
- Written Policies and Procedures
- Board Review of Form 990
David Lowenthal, CPA, JD, LLM, Tax Senior Manager,
- Evaluate who is looking at your form?
- Charity Raters
- First Impressions Matter – What could go wrong on page 1?
- Part I, 1 is too long or vague
- Independent/Non-Independent Directors
- Lots of UBIT as a proportion of your total revenue
- Big swings in comparative financial information
- Telling your story – Part III
- Mission – concise and impactful
- Activities – describe them in detail (but not too much detail)
- Describe all your activities
- Being a good NFP citizen Part VI
- Directors – being an “independent board”
- Business relationships
- Management by a third party
- Form 990 review
- Conflict of Interest
- Compensation explanation
- Compensation Part VII/Schedule J
- Know where your organization stands compared to other organizations
- Make sure everyone knows their compensation is out there
- Make sure you can explain unusual perq’s
- Make sure you understand how comparables were prepared
- Make sure you understand big deferred compensation payments
- Revenue Part VIII
- Does it matter whether my government payment is a grant or a program service receipt?
- Describing your program service revenue
- Special Events – profitable or big losses
- Other revenue – avoid big amounts here
- Functional expenses Part IX
- Know your percentages of program, admin and fundraising
- Understand how charity watchdogs use these percentages
- Understand how you compare to your competitors
- Recognize – allocations between functional categories often follow very different
Kevin Ryan, CPA, Partner,
Paula Vuksic, CPA, MST , Partner ,
- Automatic revocation and reinstatement procedures
- Potential identity theft – ss numbers on return
- Governance and the relationship with tax compliance
- Board policies or the lack thereof
Linda M. Lampkin, Research Director,
ERI Economic Research Institute
Who cares what’s reported on the 990 anyway?
- IRS, state regulators
- Orgs competing for staff or wanting to pay market rates
- Clients, customers, public
- Congress – defining what should be nonprofit
Impact of revision – what IRS now knows and how that data will be used
- Change to calendar year reporting allows check with annual reported earnings for execs
- Add c (other)s to what’s public
- Use of algorythms – size, NTEE – research by IRS to find patterns of abusers
- Relationships with related orgs
- Prepare for e-filing
E-filing – now for some, but perhaps will be coming soon for all
- Mandatory for very large and very small
- 13% now e-file and IRS spends most of its tax-exempt resources processing paper
- Need change in legislation to remove 250-return rule
- With change, more timely and high quality reporting; data in usable format
Focus on nonprofit compensation – hot topics
- State level – awarding of government contracts to high paid CEOs?
- Charity watchdogs – change focus from finances to “effectiveness”
- What is too much – how many are “highly paid?
- Avoiding IRS scrutiny
Robert Moreland, Tax Manager,
Blue & Co., LLC
Political and Lobbying Activities
- Definition of lobbying and political activity
- Limitation of activity for 501 (c) organizations
- 501(h) elections
- What is it and how do I get one?
- How does it work?
- What are the advantages and disadvantages?
- What is a 527 organization?
- How does all of this end up on the 990?
Who Should Attend:
- Directors and Officers of Healthcare Firms
- Hospital Executives
- Healthcare Organization- Financial Reporting & Accounting
- Executive Directors
- CFOs- Tax Managers
- Financial Officers
- Senior Officers
- Tax-exempt Auditors
- Tax-exempt Organization Lawyers
- Nonprofit Organization Executives
- Other Related Professionals
Seth Perlman is Senior Partner at Perlman & Perlman, LLP a leading provider of legal counsel to nonprofits, fundraising professionals and social enterprises. Mr. Perlman has been advising philanthropic organizations for more than two decades. Among his clients are large public charities, private foundations, and Fortune 500 companies that have embarked on philanthropic endeavors.Mr. Perlman has litigated in several state and federal jurisdictions on issues relevant to the philanthropic community. He has advised Congress and state governments on legal and regulatory issues relevant to philanthropy.Mr. Perlman is the author of Fundraising Regulation, a handbook on the regulatory requirements and procedures for nonprofits soliciting contributions on a state-by-state basis. Mr. Perlman received the Outstanding Nonprofit Lawyer Award from the American Bar Association in 2009 for distinguished service by an attorney practicing nonprofit law.
Seth Perlman is Senior Partner at Perlman & Perlman, LLP a leading provider of legal counsel to nonprofits, fundraising professionals and social …
David is a Tax Senior Manager within firm’s Not-for-Profit Practice. David has 15 years of experience working with a diverse group of not-for-profits including social service organizations, arts and cultural institutions, trade and professional associations, economic development organizations, private schools, private foundations, and colleges and universities. He provides not only technical review of not-for-profit tax returns but also is involved in complex tax consulting and planning.David has recently helped clients on a variety of not-for-profit tax issues including Form 990, Form 990-T, qualification and preservation of tax exemptions, executive compensation and ASC 740-10 “Accounting for Uncertainty in Income Taxes”(formerly known as FIN 48). He has also represented clients before the Internal Revenue Service at both the examination and appeal levels.David holds a BA in History from the University of Wisconsin–Madison, a JD from the University of Miami (Florida) and an LL.M in Taxation (with distinction) from the Georgetown Law Center. He is a member of the AICPA, the Illinois CPA Society, the Tax Section of the American Bar Association and the Chicago Bar Association. He currently serves as the Chair of the CBA – Trade and Professional Association Committee. He was recently appointed to a three year term on the IRS Great Lakes TE/GE Council – a group of elite practitioners.
David is a Tax Senior Manager within firm’s Not-for-Profit Practice. David has 15 years of experience working with a diverse …
Kevin provides audit, tax and business consulting services to clients in a variety of fields, with a special emphasis in the not-for-profit industry. As a partner with over twenty-five years of experience, he brings broad expertise to his clients’ challenges.Kevin is an expert in the not-for profit sector, providing audit services to a number of charter schools in the Philadelphia area. He is on the local board of directors of the Leukemia and Lymphoma Society where he was the past National Secretary and Treasurer. Additionally, Ryan served as the Vice- Chairman of the organization’s National Audit Committee. He has also sat on other not-for-profit boards over the years.He is a licensed Certified Public Accountant in Pennsylvania and is a member of PICPA and AICPA. Kevin is a member of the firm’s Executive Committee. He has also served as an adjunct professor and is currently serving a two year term as the Chairman of the board of the Eastern, PA chapter of the Leukemia and Lymphoma Society. He holds a bachelor’s degree in accounting from Temple University
Kevin provides audit, tax and business consulting services to clients in a variety of fields, with a special emphasis in …
Paula has over 15 years of experience and has recently been named the tax leader of the firm’s Not-for-Profit Organizations Practice. Paula has significant experience in reviewing and overseeing the preparation of Form 990s and Form 990-PFs on behalf of the firm’s not-for-profit clients. She is also an expert in international tax matters, including expatriate issues, and has worked with closely held private businesses to help them run more efficiently and profitably.Paula is a member of the AICPA and the NJSSCPA. She is involved in the Women in Business section of the Morris County Chamber of Commerce and is a Girl Scout Leader. Paula graduated magna cum laude from Fairleigh Dickinson University with a B.A. in accounting and has earned her master’s in taxation at Seton Hall University
Paula has over 15 years of experience and has recently been named the tax leader of the firm’s Not-for-Profit Organizations …
Linda M. Lampkin heads the Washington, DC, office of ERI Economic Research Institute and is the com-pany’s expert on nonprofit issues. Previously, as director of the National Center for Charitable Statistics at the Urban Institute, she worked with the IRS on the Form 990 revision and improvement of nonprofit reporting, with the goal of developing databases that make 990 data useful to researchers and practitioners. She co-authored the New Nonprofit Almanac and numerous research papers on the nonprofit sector. After a 30-year career as an economist working for various nonprofits and labor unions, she joined ERI seven years ago. She holds a BS in Eco¬nomics and an MS in Labor Economics from Cornell University
Linda M. Lampkin heads the Washington, DC, office of ERI Economic Research Institute and is the com-pany’s expert on nonprofit …
Mr. Moreland has specialized in tax issues that impact health care and not-for-profit organizations for over 10 years, working in both private industry and the public accounting sector. His focus is on tax planning and compliance for the tax exempt entities and related subsidiaries. Mr. Moreland works with clients to identify exposure to items such as excess benefit transactions, unrelated business income and other issues unique to tax exempt organizations.
Mr. Moreland has specialized in tax issues that impact health care and not-for-profit organizations for over 10 years, working in …
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About Perlman & Perlman, LLP
Perlman & Perlman serves as general counsel to individuals, nonprofit corporations and trusts, fundraising consultants, professional solicitors, joint nonprofit/for-profit ventures, and social enterprise companies nationwide. Our legal services are high-quality, timely, and tailored to each client’s unique needs. As the oldest and largest provider of fundraising registration services in the United States, our compliance specialists have unrivaled knowledge and expertise. We successfully guide hundreds of nonprofits, fundraising counsel, professional solicitors and commercial co-ventures through the registration process ensuring compliance with every requirement.
About Plante Moran
Plante Moran is among the nation’s largest certified public accounting and business advisory firms, providing clients with tax, audit, risk management, financial, technology, business consulting, and wealth management services. Plante Moran has a staff of more than 2,000 professionals throughout Michigan, Ohio, and Illinois with international offices in Shanghai, China; Monterrey, Mexico; and Mumbai, India. Plante Moran has been recognized by a number of organizations, including FORTUNE magazine, as one of the country’s best places to work. For more information about Plante Moran, please visitwww.plantemoran.com.
About Citrin Cooperman
Citrin Cooperman is a regional accounting, tax, and consulting firm with offices in New York, New Jersey, Connecticut, Pennsylvania, and the Cayman Islands The not-for-profit team consists of professionals who meet the needs of organizations in the areas of assurance, tax, consulting, Federal Award Compliance, technology and more. Their objective is to maintain the most current information available as it relates to developments for not-for-profit organizations so your organization can focus on success and not regulations.Citrin Cooperman’s Not-For-Profit practice team members prepare the 990 filings in a timely manner and works with its clients to ensure that all of the required information and disclosures have been properly captured in the 990 filings. Additionally, the team is available to management to review the 990 filing with both management and the audit or other equivalent committee charged with the oversight of the 990 filing and answer any questions
About ERI Economic Research Institute
ERI Economic Research Institute is a compensation analytics firm that compiles job competency, cost-of-living, executive compensation and salary survey data. Over 10,000 annual subscribers use ERI analytics for compensation and salary planning, expert witness testimony, relocations, disability determinations, board presentations, setting salary structures, and determination of salaries & bonuses. More information atwww.erieri.com or call 800-627-3697.
About Blue & Co., LLC
Blue & Co., LLC is an independent accounting and advisory firm with offices in Indiana, Ohio and Kentucky. Blue’s public accounting expertise includes the practice areas of assurance, tax compliance and consulting, healthcare consulting, benefit plan services, valuation and litigation support, and business services and consulting. Its industry specializations include healthcare, construction, not-for-profit, manufacturing and distribution, and agribusiness.Established in 1970 and headquartered in Carmel IN, Blue & Co. has been ranked in the Top 100 U.S. public accounting and consulting firms for more than 10 years according to both INSIDE Public Accounting and Accounting Today magazines. Blue is a member of the AICPA Division for CPA Firms, Employee Benefit Plan Audit Quality Center, Governmental Audit Quality Center, and Center for Audit Quality as well as the Center for Nonprofit Excellence. For more information, please visit www.blueandco.com