The IRS just issued a new exempt organization's governance checklist for agents to use in capturing data about practices and internal controls of nonprofit organizations MSAE urges each association to review and utilize this list to personally check where they are on compliance with the IRS. Click here for the check list.

The data collected by IRS auditors will be included in a long-term study to gain a better understanding of the intersection between governance practices and tax compliance, the IRS reports.

Most of the questions on the check sheet are consistent with the new Form 990, such as whether the organization has a written mission statement articulating its purpose, and how many board members have voting rights. IRS agents are also directed to look at compensation arrangements for all officers, directors, trustees and key employees and whether those salaries are approved by an authorized body with no conflict of interest. The guide sheet also has agents checking to see what comparability data is used in setting compensation, and whether those comparables are from other nonprofit organizations or for-profit companies. Remember, this is why it is important to complete the MSAE Compensation Survey so that you have valid data to compare against.