Not only is the tax-exempt status of a charity sacred, but so is its integrity and good name!
Indeed, today’s nonprofit organizations are under heightened scrutiny by regulators to ensure compliance with federal and state laws. Excessive compensation and other benefits given to board members, trustees, officers, or key employees can trigger the private inurement prohibition, putting the nonprofit at risk for intermediate sanctions or even losing its tax-exempt status. As a lawyer for a charity or member of its board of directors, what are your responsibilities to ensure that its income and assets don’t unreasonably benefit an “insider”?
In Advising Nonprofit Organizations: Complying with Limits on Compensation, Benefits, and Other Payments, our faculty will explain what legal advisors to, and members of, a charity’s board of directors need to know to comply with IRS and state guidelines on excess benefit transactions, including reporting and governance issues.
What You Will Learn
Topics for discussion include:
What actions constitute private inurement?
Who are “qualified persons”?
What is the “fair and reasonable” test?
How is excessive compensation measured?
How are intermediate sanctions calculated?
What is involved in IRS Form 990 reporting?
Who Should Attend
This accredited CLE program from ALI CLE will benefit attorneys and other professionals who serve on a nonprofit organization’s board of directors or who advise nonprofit organizations.