Executives

Tax Implications for Executive Compensation in Nonprofit Organizations

Attracting and retaining the right talent to provide leadership can have a significant impact on how dynamically a nonprofit organization is able to meet the needs of its community. While there are many methods for providing benefits to executives, one primary focus for attracting talent is designing attractive compensation packages. However, compensation for employees of nonprofit organizations, and in particular executives, is subject to special restrictions under the Internal Revenue Code (the “Code”). This article will provide guidance for organizations to help navigate some of these restrictions. Topics covered in this article include: (1) What is reasonable compensation? (2) What is a private inurement? (3) How does the new tax bill affect compensation for nonprofit executives? (4) Guidance for structuring an incentive compensation policy. Executive Compensation [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2018/11/Article-Executive-Compensation-Article.pdf" title="Article- Tax Implications for Executive Compensation in Nonprofit Organizations"]

Webcast: Competing Professional or Personal Interests: When Somebody’s Gain is Your Organization’s Loss

Does your organization ever work with businesses owned by a board member, Executive Director or employee or someone related to one of those people? Maybe hire a printing company or rent office space from such a person or company? Use a caterer for an event who is married to a Board Member? Has your Executive Director written a book related to the mission of the organization or does he or she receive speaking fees for speeches s/he gives? All of these examples raise potential conflicts of interest issues. Some of these conflicts can put the organization and its decision-makers at risk of penalties. Most nonprofits have a Conflicts of Interest Policy, but many nonprofits don't really understand what it covers, how to properly use the policy and how to comply with it. Questions to be asked include: Who is gaining what? Is the organization getting the best deal? Have other options been considered? Who is involved in making the decision? Has the organization documented any of this information or its decision? During this one hour webcast, our speaker will: • Explain what a Conflicts of Interest ("COI") policy and Procedure should include, • How an organization should use its COI policy and procedure, • And discuss a variety of examples of potential conflicts and the questions to consider when addressing them. Presenter: Robyn Miller Staff Attorney, Pro Bono Partnership of Atlanta Competing Interest Webcast [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2012/07/Competing-Interests-COI-2012-Webcast-final.pdf" title="Slides: Competing Interests-Conflict of Interest"]

Conflict of Interest Policies: Disclosure, Monitoring, and Enforcement

The IRS has made it clear that you should have a written conflict of interest policy and it’s a good idea for your organization. Learn how often they should be reporting and the additional compliance steps you need to take. Please note that in addition to the legal disclaimer above, this article contains information that is based, in whole or in part, on the laws of the District of Columbia. As a result, the information may not be appropriate for organizations operating outside the District of Columbia. [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2016/01/dc-bar-alert-conflict-of-interest-disclosure-10-15.pdf" title="Article: Conflict of Interest Policies"]

Executive Compensation Alert

Because you are a nonprofit the Internal Revenue Code puts limits on how much you pay your executives. Learn more here to avoid stepping over that line. Please note that in addition to the legal disclaimer above, this article contains information that is based, in whole or in part, on the laws of the District of Columbia. As a result, the information may not be appropriate for organizations operating outside the District of Columbia. [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2011/12/ExecutiveCompensationAlert1.pdf" title="Article: Executive Compensation"]

Compensating Insiders – How to Avoid Excess Benefit Transactions and Comply with IRS Rules

The IRS prohibits every 501(c)(3) nonprofit from paying its officers, directors and other insiders too much for any goods or services they provide to the organization. Nonprofits that do not follow these rules, and any officer or director who approved an excess payment, may be subject to taxes, fines and other penalties. This article will help your nonprofit determine whether a payment is within acceptable practices or whether it would result in an excess payment. Please note that in addition to the legal disclaimer above, this article contains information that is based, in whole or in part, on the laws of the District of Columbia. As a result, the information may not be appropriate for organizations operating outside the District of Columbia. [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2011/12/Excess_BenTran11.pdf" title="Article: Excess Benefit Transactions"]

Private Inurement

Private inurement (using charity's income or assets for personal use) is prohibited by the IRS. Learn more about this important restriction and suggestions on how to protect your 501(c)(3) status. Private Inurement [pdf-embedder url="https://pbpatl.org/wp-content/uploads/2011/12/PrivateInurement1.pdf" title="Article: Private Inurement"]