Did you know that nearly 52 percent—170,568, to be exact (according to the July 29, 2010, IRS master file of exempt organizations)—of charities that file Form 990 and 990-EZ have fiscal years that end in December? Which means it’s budget time for these organizations.
And did you know that nearly 31 percent—101,248, to be exact—of these charities have incomes of $100,000 or more? They are the organizations most likely to have paid staff. And setting compensation is an important part of the budget process. Which means it's a good time to review the rules related to compensation for executives who lead tax-exempt organizations.
That last one is the kicker, especially when you consider that the IRS is looking more closely at nonprofit compensation every day. Which means that, if your organization pays its top staff, it's time to get:
Download our free resource on nonprofit compensation, "The Private Inurement Prohibition, Excess Compensation, Intermediate Sanctions, and the IRS's Rebuttable Presumption: A Basic Primer for 501(c)(3) Public Charities." This report:
The report was written by Karl E. Emerson, an attorney with Montgomery, McCracken, Walker & Rhoads, LLP in Philadelphia, a nationally recognized speaker on nonprofit compliance issues, and the past director of the Pennsylvania Bureau of Charitable Organizations.
Download the report
Suzanne E. Coffman, September 2010© 2010, GuideStar USA, Inc.
Suzanne Coffman is GuideStar's editorial director and editor of the GuideStar Newsletter.
GuideStar is a 501(c)(3) nonprofit organization. Copyright © 2015, GuideStar USA, Inc. All rights reserved.