New 990: Part VI
Part VI of the core of the new Form 990 for exempt organizations requests information about policies regarding governance, management, and disclosure. This information isn't required by the Internal Revenue Code, but the responses will flow through the 990 to guidestar.org and other Web locations. This is the aspect of the new form that will change the world for some non-profits and their funders. Nothing prevents an organization from giving the "wrong" answer to a question or from providing a phrase such as "flipping a coin" for the Schedule O documentation of procedures. However, those responses will be out there, and the non-profit food chain can deal with them as it sees fit. Funders and the media will have a powerful tool to penetrate the sometimes murky inner workings of non-profits.
Here's Part VI from the IRS Draft
Part VI Governance, Management, and Disclosure
(Sections A, B, and C request information about policies not required by the Internal Revenue Code.)
Section A. Governing Body and Management
For each “Yes” response to lines 2-7 below, and for a “No” response to lines 8 or 9b below, describe the
circumstances, process, or changes in Schedule O. See instructions.
1 a Enter the number of voting members of the governing body
b Enter the number of voting members that are independent
2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee?
3 Did the organization delegate control over management duties customarily performed by or under the directt supervision of officers, directors or trustees, or key employees to a management company or other person?
4 Did the organization make any significant changes to its organizational documents since the prior Form 990 was filed?
5 Did the organization become aware during the year of a material diversion of the organization’s assets?
6 Does the organization have members or stockholders?
7 a Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body?
b Are any decisions of the governing body subject to approval by members, stockholders, or other persons?
8 Did the organization contemporaneously document the meetings held or written actions undertaken during
the year by the following:
a the governing body?
b each committee with authority to act on behalf of the governing body?
9 a Does the organization have local chapters, branches, or affiliates?
b If “Yes,” does the organization have written policies and procedures governing the activities of such chapters,
affiliates, and branches to ensure their operations are consistent with those of the organization?
10 Was a copy of the Form 990 provided to the organization’s governing body before it was filed? All organizations
must describe in Schedule O the process, if any, the organization uses to review the Form 990
11 Is there any officer, director or trustee, or key employee listed in Part VII, Section A, who cannot be reached at
the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O
Section B. Policies
12 a Does the organization have a written conflict of interest policy? If yes:
b Are officers, directors or trustees, and key employees required to disclose annually interests that could give
rise to conflicts?
c Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,”
describe in Schedule O how this is done
13 Does the organization have a written whistleblower policy?
14 Does the organization have a written document retention and destruction policy?
15 Did the process for determining compensation of the following persons include a review and approval by
independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision:
a The organization’s CEO, Executive Director, or top management official?
b Other officers or key employees of the organization?
Describe the process in Schedule O.
16 a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement
with a taxable entity during the year?
b If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate
its participation in joint venture arrangements under applicable Federal tax law, and taken steps to safeguard
the organization’s exempt status with respect to such arrangements?
Section C. Disclosure
17 List the States with which a copy of this Form 990 is required to be filed.
18 IRC Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only)
available for public inspection. Indicate how you make these available. Check all that apply.
own website
another's website
upon request
19 Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest
policy, and financial statements available to the public.
20 State the name, physical address, and telephone number of the person who possesses the books and records of the
organization:
Here's Part VI from the IRS Draft
Part VI Governance, Management, and Disclosure
(Sections A, B, and C request information about policies not required by the Internal Revenue Code.)
Section A. Governing Body and Management
For each “Yes” response to lines 2-7 below, and for a “No” response to lines 8 or 9b below, describe the
circumstances, process, or changes in Schedule O. See instructions.
1 a Enter the number of voting members of the governing body
b Enter the number of voting members that are independent
2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee?
3 Did the organization delegate control over management duties customarily performed by or under the directt supervision of officers, directors or trustees, or key employees to a management company or other person?
4 Did the organization make any significant changes to its organizational documents since the prior Form 990 was filed?
5 Did the organization become aware during the year of a material diversion of the organization’s assets?
6 Does the organization have members or stockholders?
7 a Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body?
b Are any decisions of the governing body subject to approval by members, stockholders, or other persons?
8 Did the organization contemporaneously document the meetings held or written actions undertaken during
the year by the following:
a the governing body?
b each committee with authority to act on behalf of the governing body?
9 a Does the organization have local chapters, branches, or affiliates?
b If “Yes,” does the organization have written policies and procedures governing the activities of such chapters,
affiliates, and branches to ensure their operations are consistent with those of the organization?
10 Was a copy of the Form 990 provided to the organization’s governing body before it was filed? All organizations
must describe in Schedule O the process, if any, the organization uses to review the Form 990
11 Is there any officer, director or trustee, or key employee listed in Part VII, Section A, who cannot be reached at
the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O
Section B. Policies
12 a Does the organization have a written conflict of interest policy? If yes:
b Are officers, directors or trustees, and key employees required to disclose annually interests that could give
rise to conflicts?
c Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,”
describe in Schedule O how this is done
13 Does the organization have a written whistleblower policy?
14 Does the organization have a written document retention and destruction policy?
15 Did the process for determining compensation of the following persons include a review and approval by
independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision:
a The organization’s CEO, Executive Director, or top management official?
b Other officers or key employees of the organization?
Describe the process in Schedule O.
16 a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement
with a taxable entity during the year?
b If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate
its participation in joint venture arrangements under applicable Federal tax law, and taken steps to safeguard
the organization’s exempt status with respect to such arrangements?
Section C. Disclosure
17 List the States with which a copy of this Form 990 is required to be filed.
18 IRC Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only)
available for public inspection. Indicate how you make these available. Check all that apply.
own website
another's website
upon request
19 Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest
policy, and financial statements available to the public.
20 State the name, physical address, and telephone number of the person who possesses the books and records of the
organization:
posted by Jesse at
6/28/2008
1 Comments:
In England and Wales the Statement of Recommended Practice (SORP)sets out a framework for not only reporting financial information but also narrative information similar to what is required by the new 990. The guidance (for larger charities) requires them to make statements on organisation structure and governance, organisational policies (holding of reserves, risk management) etc.
You can look at an example of the GuideStar UK website (paste this link into your browser)
http://www.guidestar.org.uk/gs_summary.aspx?CCReg=269425&strquery=national%20autistic%20society
Or just go to www.guidestar.org.uk and type in 269425 into the search box.
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