The NonProfit Times - October 1, 2008 - (Page 15)

TAXING ISSUES • Were within the group of the organization’s top-20 highest paid persons for the year who satisfied both the $150,000 test and the responsibility test. Another new requirement is that you must describe your process for determining the compensation of your CEO, executive director, other officers, and key employees.The classification of “officer” is determined by reference to state law, but it always includes the organization’s top management official. PART VIII Statement of Revenue Similar to Parts I and VII of the previous form, this part details the sources of an organization’s revenue. It is broken into three main sections: contributions, program service revenue, and other revenue. PART XI Statement of Functional Expenses Previously Part II, the IRS in the new form has retained the requirement that Section 501(c)(3) and Section 501(c)(4) organizations break out their expenses by functional category. Other organizations are required to report all of their expenses but are not required to break them down according to function. PART X Balance Sheet Few changes are made to the baloversight committee for such engagements, and whether it was required to undergo an audit under the Single Audit Act and OMB Circular A-13. PLANNING FOR NEW FORM 990 Due to the increased information requirements of the new Form 990, your organization should begin to assess its readiness to complete the form. Such an assessment will provide you with sufficient time to develop, update and adopt the policies now asked about by the IRS. This could take the form or preparing draft responses to the questions that require descriptions of your policies, procedures, and practices. Special care should be taken by your organization to consider the adequacy of its corporate governance and conflict of interest and compensation policies and procedures. NPT Harvey Berger is a retired tax partner with Grant Thornton and currently serves as a consultant on nonprofit tax issues. His email is harvey.berger@gt.com. Douglas Damron is a senior associate in the not-for-profit tax practice in Grant Thornton’s Washington, D.C. area office. His email is doug.damron@gt.com. D. Greg Goller is Grant Thornton’s national partner-in-charge of Not-For-Profit Tax Services and is based in the Washington, D.C. area office. His email is greg.goller@gt.com ance sheet in the new form. These changes include a separate line for reporting program-related investments and intangible assets. All of the required attached schedules are now included on Schedule D. PART XI Financial Statements and Reporting This part is used to report your organization’s method of accounting, whether its financial statements are audited, reviewed, or compiled, whether it has an OCTOBER 1, 2008 THE NONPROFIT TIMES www.nptimes.com 15 http://www.cpa2biz.com/conferences http://www.specializedfundraising.net http://www.cpa2biz.com/conferences http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - October 1, 2008

The NonProfit Times - October 1, 2008 Near Miss & Direct Hit Donor Intent The Focus Of Suit North Dakota AG Investigating The Grant Institute Contents Who...When...Where...How...What? Calendar Kumbaya Tying The Knot Filing Changes Philanthropy Caucus Big Bucks For Capital Campaigns 5 Things NOT To Do In A Capital Campaign Acquisition: Staying The Course ServiceNation Summit Fundraising Guide NPT Jobs Resource Directory

The NonProfit Times - October 1, 2008

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