1. Non-Profit Governance and Compliance

2. Things that can jeopardize your non-profit status
Private benefit/inurement
Lobbying
Political Activity
Excessive unrelated business income

3. Should keep records in four categories
Money coming in
Money going out
Employment tax records
Asset records

4. Filing requirements for Federal returns
Gross receipts less than 50,000 can file a 990-N (which is an E- Postcard filed to the IRS)
Gross receipts less than 200,000 and total assets less than 500,000 can file a 990-EZ or a 990
Gross receipts greater than 200,000 and total assets greater than 500,000 must file a 990
See the attached sample forms at the end of the packet. The highlighted areas of the Form 990 are the IRS’ hotspots.
Calendar year end entities - Return is due May 15th. An extension is available if needed.

5. Three types of audits Correspondence examinations Office examinations
Field examinations

6. Governance policies
An organization should be prepared to adopt and enforce a series of basic governance policies and practices as a minimum for best practices
Code of Ethics
Conflict of Interest (see attached)
Donor Gift/Acceptance Policy (see attached)
Executive Compensation
Expense Reimbursement (see attached)
Joint Ventures (see attached)
Political Activities (see attached)
Record Retention/Destruction (see attached)
Whistleblower (see attached)
Grant Guidelines
Transactions with Interested persons
Investments
Chapter Branches and Affiliates
Fundraising Policies

7. Guidestar www.guidestar.org
Guidestar provides information about all non-profit organizations.
Ability to update your profile with information about your organization

8. IRS Hotspots
Unrelated Business Income (UBI) – For example, you run a shelter, but create a new dog grooming service within the shelter. If you charge a fee for the grooming, that income is considered Unrelated Business Income. It is not the original intent of the organization and is “Unrelated” to the organizations mission.
Excess Officer/Employee salaries (>$100,000)
Excess contractor payments (>$100,000)
Party in interest transactions
Lack of Governance Policies

9. Shoebox of receipts vs. Financial Statement
Accounting 101
Shoebox of receipts vs. Financial Statement
The more organized your material is, the less your accountant/CPA will charge you.
Mandatory separation of personal funds and business funds
Excel format vs. Software (QuickBooks, Peachtree, etc)
Set up of computer software file is crucial.
See attached example of Audited financial statements