Qualified nonprofit organizations don't file taxes, but they do need to file the annual information return, Form 990, with the IRS. Form 990 serves as a check to make certain nonprofits are still qualified for the highly coveted tax-exempt status. To that point, Form 990 asks nonprofits about particular policies and procedures such as conflict of interest, whistleblower, investment, and compensation (to name just a few!). These specific governance policies encouraged by the IRS limit potential abuse, protect against vulnerabilities, align with federal and state laws, and prevent activities that would go beyond permitted nonprofit activities.
If you’re a nonprofit founder, executive, board member, or even an active volunteer, downloading this guide is an excellent first step toward guaranteeing the organization you’re deeply invested in is meeting (and exceeding!) the gold standard for tax-exempt organizations!
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