Nonprofit Risk Management 

Tip of the Month - January 2008

The tax man cometh

It’s a New Year and a New World out there for nonprofits that complete the IRS Form 990. Be prepared for the form’s new requirements before 2008 reaches a close. This is the time to get familiar with the new requirements so there will be no surprises or scrambling at the end of this fiscal year to be in compliance. Many CPAs are preparing their clients for increased audit fees as a result of the new form as well as new accounting procedures. Talk to your audit firm this month so you can budget for the anticipated increase. Invite your nonprofit’s outside auditor to meet with the board or the finance or audit committee to explain how the auditing firm’s review will be different in the coming year and discuss what your nonprofit needs to do to make the auditing firm’s job easier (resulting in a less costly audit!) The new Form 990 asks specifically about whether the nonprofit has key governance policies and practices in place. As a result, 2008 is the year to adopt whistleblower protection, document retention and conflict of interest policies. That way your nonprofit will be able to answer, “Yes,” when you reach these new questions on the 2008 form.

• For more information on the new IRS Form 990 and what your board and your staff should be doing to get up to speed, the Nonprofit Risk Management Center is offering an information packed Webinar on February 6, 2008 at 2 p.m. EST. If you have never attended a Webinar before, this is the one to try. Bring key personnel into a room with an internet connection, computer screen and speakerphone, and your team can "attend" for a single registration fee of $59. Click on this link to register: The New 990: Friend or Foe? What You Need to Know to Prepare Your Organization and the Board for the Road Ahead

About the Nonprofit Risk Management Center:  The Nonprofit Risk Management Center (NRMC) was established in 1990 to provide assistance and resources for community-serving nonprofit organizations. As a nonprofit, the Center is uniquely positioned to both understand and respond to questions with practical, affordable suggestions for controlling risks that threaten a nonprofit’s ability to accomplish its mission.

NRMC's mission is to help nonprofits cope with uncertainty. We offer a wide range of services (from technical assistance to software to training and consulting help) on a vast array of risk management topics (from employment practices to insurance purchasing to internal controls and preventing child abuse). We do not sell insurance or endorse organizations that do. Look to the Nonprofit Risk Management Center’s regional meetings, monthly Webinars, and online Risk Management Classroom for additional training at www.nonprofitrisk.org.

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