Although the Tax Code does not require charities to have governance and management policies, the IRS will review an organization’s application for exemption and annual information returns (Form 990) to determine whether the organization has implemented certain policies.
Policies Addressed in Form 990
Numerous policies are addressed in the Form 990, Return of Organization Exempt From Income Tax, including policies relating to:
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Charity care;
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Joint ventures;
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Debt collection;
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Gift acceptance;
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Conflict of interest;
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Tax-exempt bonds;
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Community benefits;
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Whistleblower claims;
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Form 990 review process;
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Conservation easements;
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Compensation review process;
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Document retention and destruction;
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Public disclosure document procedure;
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Payment and reimbursement of specific expenses;
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Procedure for monitoring the use of grant funds inside and outside of the United States; and
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Committee responsibility for hiring and reviewing the work of an independent accountant.
We will be glad to assist you in determining what policies are appropriate for your organization. Please contact our office at your earliest convenience.
