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