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The IRS and Treasury Acknowledge That the World Is Flat . . . Almost: Issues in Private Foundation Governance and Cross-Border Grant-Making  


Author:  Elizabeth L.  Mathieu, Esq..


Source: Volume 12, Number 02, January/February 2013 , pp.1-6(6)




Family Foundation Advisor

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Abstract: 

In the wake of the for-profit and not-for-profit scandals in the last two decades, nonprofit governance, historically the province of state regulatory agencies, is now under the microscope of the IRS. Despite the absence of any authority in the Internal Revenue Code for the IRS to consider matters of governance, the IRS has decided that how nonprofits approach governance directly reflects their attitude about tax compliance. Therefore, in 2009, the IRS expanded its Form 990 to include governance-related questions, and its audits of nonprofits to include a specific “governance practice” questionnaire to be completed by its agents. The IRS is also developing a database to create red flags regarding links between charities’ governance practices and tax compliance.

Keywords: Governance and Related Topics—(501)(c)(3) Organizations; IRS Exempt Organizations’ 2012 Work Plan; grant-making policy and procedure

Affiliations:  1: Mathieu & Ranum, PLLC.

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