As a leader in your association, you need to know that there are changes in the regulatory atmosphere around non-profit associations. Transparency, risk prevention, risk management, meeting Internal Revenue Service (IRS) compliance deadlines, ongoing policy management, and best practices are the responsibility of your association’s leaders and staff.
The IRS requires that nonprofit associations annually file a report on the status of their governance, management, and disclosure policies and procedures. In an effort to enhance the transparency of associations and their operations, changes were made to the IRS Form 990 that will affect income tax exempt organizations. There are new filing requirements and major policy questions that ensure compliance with good governance practices.
As a member of your association’s Board of Directors, you need to understand the changes taking place, and your responsibilities to the association to meet the IRS compliance deadlines in 2010 and 2011.
AML’s Action Plan:
- Education – AML Webinar to educate Board members about IRS 990 compliance and best practices,
- Staff and Consultant Work – Drafting boiler plate policies,
- Board Work:
- Assign two people to serve as your Governance Committee to work with a consultant and staff members to review, edit and customize policies and best practices for your association,
- Governance Committee presents policies to the Board for review,
- Policy and Best Practices Approval – Policies are presented at an official Board of Directors meeting before December 31, 2010, approval is reflected in official Minutes,
- Sustainability – By December 31, 2010, the association will have a sustainability checklist for ongoing 990 governance compliance and best practices,
- Annual Review – The Board reviews, edits and approves policies and best practices annually, approval is captured in official Minutes.
Contact AML President/Owner Molly Lopez, CAE, at firstname.lastname@example.org for more information about AML’s action plan for governance compliance and best practices with their association clients.