Few issues facing nonprofit organizations these days are as
prominent as executive compensation. In the last year the
Internal Revenue Service has repeatedly stated in speeches,
publications, and its 2011 annual work plan that executive
compensation is area of keen focus with tax-exempt
organizations. In addition to IRS scrutiny, with the public
availability of the Form 990, nonprofits are subject to intense
public and media scrutiny as well. Of even greater concern are
the consequences of providing executives with excessive
compensation or benefits, which can include revocation of
tax-exempt status and substantial monetary penalties on the
executives and insiders who receive (and approve) excess benefit
transactions.
This distinguished panel of legal, tax and compensation experts
will draw form their knowledge and extensive experience to explain
private inurement and intermediate sanctions, the potential
penalties for violations, and, most importantly, ways in which
nonprofits can protect themselves from running afoul of these tax
provisions. From compensation studies and surveys (including what
works and what doesn't in different circumstances), to
appropriate governance approval processes, to how compensation
information is presented in annual financial statements and the
Form 990, to the appropriate treatment of certain employee benefits
as taxable income, this program will give you practical tips and
suggestions to help keep your nonprofit -- and its executives --
out of hot water with the IRS and others.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.