The NonProfit Times - November 1, 2008 - (Page 31)

THE 2008 NPT TOP 100 Governance Becoming Institutionalized Nonprofits getting ahead of the IRS Form 990 curve BY MARK HRYWNA ith few exceptions,the vast majority of NPT 100 organizations have adopted governance policies that will be included in the next generation of the Internal Revenue Service’s (IRS) Form 990. In anticipation of the Form 990 revision that charities will have to begin filing for fiscal year ending 2008, this year’s NPT 100 included a five-question survey of governance policies. The new Form 990 will include several questions about whether an organization has adopted policies relating to conflicts of interest, whistleblowers, document retention, gift acceptance and compensation review. In compiling the NPT 100, The NonProfit Times requested that organizations complete a brief survey detailing approximately 20 lines from the nonprofit’s Form 990. Some organizations decline to complete the survey -- citing either a lack of manpower or an explicit policy because of so many requests -- and submit the Form 990 or another financial document. Eight of the 100 organizations declined to answer, or simply did not answer, the governance policy survey. Every nonprofit reported having adopted at least two of the five policies but only 68 had adopted all five. In some cases, an organization said no policy had been adopted but one is in development. W spondents, one national nonprofit replied that it has an ethics policy and hotline in place that “permits complaints, anonymous or otherwise, but does not set out express protections for the complainant, which presumably is the definition of a ‘whistleblower’ policy.” Another organization cited its employee handbook, which specifically states: “Retaliation is prohibited,” though there is no policy specifically called whistleblower. Only 81 of the 92 nonprofits (88 percent) have a document retention policy. The least likely policy that an NPT 100 organization would have adopted is a gift acceptance policy. Even still, a large majority -- 78 of the 92 organizations, or 85 percent -- indicated they did have one and of the 14 that didn’t, one was developing a policy and another responded “no informa- tion available.” A gift acceptance policy is one where organizations that don’t have it now will begin adopting it this year, Romano said. In fact, most of the policy questions that will be on the revised Form 990, probably will have all been adopted by the time organizations file their 2008 returns, he said, “to avoid any questioning of their governance structure.” NPT Successful planned giving programs have a number of things in common. A compelling mission is only the first. Most common among all nonprofits in the study was a conflict of interest policy, with all 92 responders indicating one was in place. All but one had a compensation review policy,although two of those indicated it was only for the chief executive officer. “Most of our organizations now, almost all, have conflict policies,” and the majority of them have compensation setting policies, said Dan Romano, executive director – tax, northeast higher education and not-for-profit practices, at Grant Thornton LLP. The vast majority of organizations (85 of 92, or 92 percent) claimed a whistleblower policy. Some did not necessarily have an explicit whistleblower policy but something akin to it. Among those 85 re- PG Calc has contributed to the success of literally thousands of planned giving programs, and we know what their strengths are. They have the ability to communicate their missions with clarity and depth. They have the tools to illustrate gifts in ways that appeal to donors and prospects. They have the infrastructure to manage the planned giving process smoothly and efficiently. And they have gift administration capabilities that accentuate their good stewardship. If you’d like to develop your capabilities in these areas, we can help. After all, one of the things a lot of successful planned giving programs have in common is their relationship with us. OUR AREAS OF EXPERTISE CONSULTING MARKETING CALCULATIONS AND PROPOSALS EDUCATION GIFT ADMINISTRATION 888-497-4970 www.pgcalc.com info@pgcalc.com NOVEMBER 1, 2008 THE NONPROFIT TIMES www.nptimes.com 31 http://www.pgcalc.com http://www.pgcalc.com http://www.nptimes.com

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The NonProfit Times - November 1, 2008 Reach Out Community Investment Loans Agencies Aim For Back Office Savings Contents Page 4 Special Report: An In-Depth Study of America's Largest Profits Charity Accounts Foretold Ecomonic Meltdown Liquid Assets Groups Shaving Expenses With An Eye Toward ROI Green Is Good Governance Becoming Institutionalized National September 11 Memorial & Museum Finds Its Footing NPT 100 Groups Turning Real Estate Into Cash NPT 100 Investments Beat Broader Market The NPT Power & Influence Top 50 Gala Calendar NPT Jobs Resource Directory

The NonProfit Times - November 1, 2008

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