Part VI of the Form 990's Core Form was added in an "attempt to influence behavior" and encourage "buy-in" from Boards and managers of exempt organizations to the end of maintaining good governance practices. This area of the form need be understood in that context, as the "better" answer to the form's inquiries requires specific details and information be entered upon Schedule O.
DESIGNED FOR
Public accounting tax and audit staff, and nonprofit organization's Treasurers, CFOs and finance/compliance staff
BENEFITS
The major topics that will be covered in this class include:
- Identify the six governance inquiries made in Part VI of the Core Form with the greatest public relations impact
- Recognize the importance of providing the appropriate details in Schedule O mandated by the Part VI instructions
- Be aware of the criteria by which a voting Board member will fail to be considered "independent" for purposes of this Part's Line 1b
- Determine whether the board of directors has been provided Form 990 via means sufficient to garner a “Yes” answer to the inquiry to Part VI’s Line 11a and identify the various aspects by which Form 990 preparation can be overseen by filer's managers and emphasized in the required Line 11b Schedule O narration
- Identify the multiple disclosures required when a management company is employed at any time in the tax year being reported upon which occur here in Part VI rather than in Part VII
HIGHLIGHTS
After attending this presentation you will be able to...
- Drill-down into the complete instructions behind the entirety of Part VI's six key inquiries (Board member independence (Line 1), TDOKEs' connections via business or family relationships (Line 2), use of management companies (Line 3), Board oversight of Form 990's preparation needs (Line 11), conflict of interest policies and management (Line 12), how compensation is set for top officers (Line 15)
- Discussion of the issues behind the "do you participate in a joint venture" query (Line 16)
- Summary of disclosure needs when filer has members/stakeholders with certain voting rights (Lines 6-7)
- Understand what likely comprises a "significant change" to organizational documents, and in such presence, what disclosures are required (Line 4)
- Be aware of what constitutes a "significant diversion of assets" and ramifications that result if same need be reported (Line 5)
- Understand this part's "Disclosure" Section and the public and/or regulatory reporting it serves
- Explanation of what 'motivates' additional inquiries (i.e., Lines 8-10, 13-14)
COURSE LEVEL
Intermediate
PREREQUISITES
Helpful to have some review of as-filed 990's Part VI and associated Schedule O disclosures
ADVANCE PREPARATION
None