Lois Lerner, director of the IRS’ exempt organizations division, says YES. Specifically, an IRS study (albeit a small one) found that if your nonprofit follows these 4 governance practices, it is more likely to also comply with IRS tax rules: 1. Have a written mission statement. 2. Compare your nonprofit to other nonprofits when making …
Posts Categorized: News
IRS Provides Guidance on PRIs
If you are a leader of a private foundation that engages in program-related investments (PRIs) and you find yourself constantly confused about the rules, you are not alone. To provide some much-needed relief, the IRS proposes publishing 9 new examples of acceptable PRIs. If your private foundation does not offer PRIs, the new regulations may …
Another Call for IRS to Investigate Social Welfare Orgs
As you know from our previous post, the IRS has increased its scrutiny of nonprofit organizations engaging in political activity (as it does every 4 years during the presidential election cycle). This is because while 501(c)(4) organizations are allowed to engage in lobbying without limit, they are not allowed to act in favor of or …
Boy Scouts Board Member Resigns Over Discrimination
A board member of the Boy Scouts of America (BSA) recently resigned to protest a scout leader’s termination based on her sexuality. The board member stated that although BSA explained its standing policy to bar gay leaders, he still believed the act was “wholly discriminatory.” (Read his entire letter here.) Courts have already reviewed and …
Increased IRS Oversight of Organizations with Foreign Assets
Does your nonprofit have foreign assets? If so, a new federal law will soon require it to submit a new report. Nonprofits are already subject to FBAR. In 2013, the Foreign Account Tax Compliance Act will require nonprofits to file an annual form listing foreign assets such as financial accounts, securities, and interests in foreign entities. …
How Would You Steal From Me?
That’s the question a former state regulator recently told nonprofit leaders to ask their staff members. He reasoned that because staff members are familiar with the organization, they are the best source to point out the charity’s weaknesses and vulnerabilities and to suggest improvements. While many nonprofit leaders will not feel comfortable with this approach, …