So you are a non-profit, now what? Best Practices for Non-Profit Corporations

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So you are a non- profit, now what? Best Practices for Non-Profit Corporations Karim A. Ali Ohio Association of International Baccalaureate World Schools September 27, 2013

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So you are a non-profit, now what? Best Practices for Non-Profit Corporations. Karim A. Ali Ohio Association of International Baccalaureate World Schools September 27, 2013. Agenda. 501(c)(3) Application Process Code of Regulations Conflicts of Interest Policy - PowerPoint PPT Presentation

Transcript of So you are a non-profit, now what? Best Practices for Non-Profit Corporations

So you are a non-profit, now what?Best Practices for Non-Profit Corporations

Karim A. Ali

Ohio Association of International Baccalaureate World Schools

September 27, 2013

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Agenda

● 501(c)(3) Application Process● Code of Regulations ● Conflicts of Interest Policy● Best Practices – Non-Profit Corporation

Governance● Next Steps

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501(c)(3) Application Process

● Submit Form 1023● IRS Review● IRS Comments / OAIBWS Responses● Final IRS Review● IRS Decision

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Code of Regulations

● Supersedes the OAIBWS constitution● “Charitable Purpose”● “No Private Inurement” ● Limited Purpose● Officer Duties● Officer Removal● Action without a meeting

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Conflicts of Interest Policy

● Highly recommended by the IRS

● Members of the Executive Board (and representatives of member schools) should disclose their personal or financial interest in matters coming before OAIBWS

● Avoid private benefit

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Best Practices

● Duty of Care The executive board has a legal duty to exercise

due diligence in good faith-• Executive Board must use reasonable prudence

• Executive Board must reasonably believe a decision is in the best interest of OAIBWS

• Executive Board has a duty to inquire

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Best Practices

● Duty of Care Executive Board must be informed about the

financial status of OAIBWS

Executive Board must have full and accurate information to make informed decisions

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Best Practices

● Duty of Loyalty The executive board has a legal duty to act in

the best interest of OAIBWS rather than their personal or financial interest.

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Best Practices

● Non-Profit Governance Financial reporting and monitoring Established expense approval process Financial audits (at least annually) Formal approval of expenses exceeding

$250.00 Document decision making Re-evaluate processes annually Permanent mailing address for OAIBWS

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Next Steps

● Document retention policy

● Annual reporting obligations

● Approval of governance documents

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Contact Information

Karim A. Ali

Porter Wright Morris & Arthur LLP

41 South High Street

Suite 2900

Columbus, OH 43201

(614) 227-2023

[email protected]