pAul2437

pAul2437 t1_ixn317q wrote

“the IRS conducts a compensation review when it examines the 990 forms nonprofits have to file annually. In part II of Schedule J, nonprofits must disclose various types of compensation. The organization must also specify how compensation was determined:

  • Compensation committee,
  • Independent compensation consultant,
  • Form 900 of other organizations,
  • Written employment contract,
  • Compensation survey or study, and/ or
  • Approval by the board or compensation committee. Organizations which report excess benefit transactions must provide further detailed information on the nature of the excess benefit transaction under Form 990 Schedule L.”

“Funders, regulators, and the IRS have also taken action to curtail high salaries in the nonprofit sector by instituting numerous penalties and accountability measures. As a result, nonprofits must approach executive compensation with a strong focus on compliance.”

https://capacityexperts.com/nonprofit-excessive-executive-compensation/

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