Part VI of the Form 990’s Core Form was added in an “attempt to influence behavior” and encourage “buy-in” from Boards and managers of exempt organizations to the end of maintaining good governance practices. This area of the form need be understood in that context, as the “better” answer to the form’s inquiries requires specific details and information be entered upon Schedule O. Unfortunately, 990 filers frequently ignore those instructional imperatives. This session’s comprehensive materials and the author/instructor’s practical experience are both employed to emphasize both the fine points of the relevant instructions and make it easy for filers to comply with this part’s requirements in tune with common public relations needs.
After attending this presentation you will be able to: Drill-down into the complete instructions behind the entirety of Part VI’s six key inquiries (Board member independence (Line 1), TDOKEs’ connections via business or family relationships (Line 2), use of management companies (Line 3), Board oversight of Form 990’s preparation needs (Line 11), conflict of interest policies and management (Line 12), how compensation is set for top officers (Line 15) Discussion of the issues behind the “do you participate in a joint venture” query (Line 16), Summary of disclosure needs when filer has members/stakeholders with certain voting rights (Lines 6-7), Understand what likely comprises a “significant change” to organizational documents, and in such presence, what disclosures are required (Line 4), Be aware of what constitutes a “significant diversion of assets” and ramifications that result if same need be reported (Line 5), Understand this part’s “Disclosure” Section and the public and/or regulatory reporting it serves, Explanation of what ‘motivates’ additional inquiries (i.e., Lines 8-10, 13-14).
Helpful to have some review of as-filed 990’s Part VI and associated Schedule O disclosures
The major topics that will be covered in this class include: Identify the six governance inquiries made in Part VI of the Core Form with the greatest public relations impact Recognize the importance of providing the appropriate details in Schedule O mandated by the Part VI instructions. Be aware of the criteria by which a voting Board member will fail to be considered “independent” for purposes of this Part’s Line 1b, Determine whether the board of directors has been provided Form 990 via means sufficient to garner a “Yes” answer to the inquiry to Part VI’s Line 11a and identify the various aspects by which Form 990 preparation can be overseen by filer’s managers and emphasized in the required Line 11b Schedule O narration, Identify the multiple disclosures required when a management company is employed at any time in the tax year being reported upon which occur here in Part VI rather than in Part VII.
Eve Borenstein is a partner in Borenstein and McVeigh Law Office (BAM!), a Minnesota law firm that is the base of Eve’s national tax practice and services nonprofits and tax-exempt organizations exclusively.
Separate from the law firm, Eve operates a teaching and speaking consultancy offering instruction on nonprofit and exempt organization mandates, Eve Rose Borenstein, LLC.
Eve received her law degree from the University of Minnesota in 1985 and thereafter embarked on exempt organizations tax work at a “Big 8” accounting firm. From 1989-2003 she maintained a solo practice serving tax-exempt non-profit corporations, and in 2004 created the BAM Law firm with nonprofit corporate counsel Ellen W. McVeigh. From her law firm’s practice and through her teaching and speaking, Eve works to assist diverse nonprofit organizations with tax-exemption qualification, corporate planning and compliance. The bulk of her legal practice is representing exempt organizations before the Internal Revenue Service and/or State regulators on audit, qualification and classification issues; through 2009 she had represented more than 850 organizations before the IRS.
Eve volunteers extensively with multiple professional committees, including the American Bar Association’s Tax Section Committee on Exempt Organizations, from which she serves as a liaison to the American Institute of Certified Public Accountants’ Exempt Organization Technical Resource Panel. Through such service, and individually, Eve was integrally involved in the IRS’ Redesign of the Form 990. She was chosen by the IRS to be one of two private practitioners on the IRS Tax Talk Today TV broadcast in November 2008 dedicated to the Redesign of the Form 990, and has appeared multiple times since with IRS officials on educational panels concerning that Form.
Eve was also one of the original non-IRS collaborators in the Form 1023 Revision Project that culminated in that Form’s October 2004 “make over”. She enjoys teaching and speaking and is committed to “helping the sector (and its advisors) do it right the first time!”
Non-Member Price $69.00
Member Price $49.00