By Steve Brettholtz
steve.brettholtz@mbcopa.com
Good governance helps to ensure that a nonprofit operates effectively, complies with tax laws, safeguards its assets, and serves its mission.
In February, 2007, the IRS posted on their website a draft of possible good governance practices for nonprofits. While the draft was never issued, many of the practices were incorporated in the revamped Form 990. In addition, on their website, the IRS has provided information in the educational tool called "Life Cycle" regarding specific governance issues.
The following issues are discussed in the governance section of Life Cycle as they relate to Form 990:
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Mission
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Organizational Documents
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Governing Body
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Governance and Management Policies
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Financial Statements and Form 990 Reporting
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Transparency and Accountability
For more detailed information, go to www.irs.gov/charities/charitable and click on Life Cycle.
