Tuesday, June 28, 2011
IRS Does Not Require Full Board to Adopt Policies
Posted by Armanino Nonprofit Team
Exempt organizations will no longer be required to get the full board of directors to adopt the whistleblower, conflict of interest, and other governance policies for the 2010 Form 990. The IRS will instead allow a committee of the full board to adopt the policy if the policy is adopted by the end of its tax year.
Congress and the IRS have stressed the need for more board engagement in the affairs of the organization. However, the IRS found that these governance questions were problematic for some exempt organizations since many boards delegate authority for those policies to a committee. The IRS plans to allow this change for the 2010 990 and revisions will be made to the 2011 990 instructions.
Nonprofit organizations have specialized audit, tax and operational needs that require specialized service. Armanino has been committed to the nonprofit sector since 1953, and we now work with more than 500 nonprofit clients. This hands-on experience gives our staff of CPAs and former CFOs a deeper understanding of the issues nonprofits face, so we’re able to meet their needs and help them fulfill their missions in the most efficient, cost-effective way possible.