Final 501(c)(3) Regulations Issued
Effective March 28, 2008, the Internal Revenue Service issued final regulations clarifying the substantive requirements for tax exemption under section 501(c)(3) and the imposition of section 4958 excise taxes on excess benefit transactions.
Executive Compensation Governance, Compliance with IRS Guidelines, and Establishing the “Rebuttable Presumption of Reasonableness”
From a regulatory perspective it is imperative that an organizational process be established, followed, and adequately documented. Upon audit, if a paper trail cannot be found or followed, it will likely be viewed by the IRS as having never occurred.
Results from the latest Yaffe & Company, Inc. survey on Healthcare Board of Directors
One of the Good Governance Principles as outlined in the report by the Panel on the NonProfit Sector is to establish clear guidelines for the term length of board members.
Form 990 Redesign & Reporting Project
As part of the IRS Compliance Initiative, the Form 990 redesign project will most likely focus on reducing the number of places the same information is reported on the form and requesting specific information to identify potential noncompliance areas such as loans to officers and directors.
Results from the Yaffe & Company Executive Compensation Survey for Colleges and Universities
Yaffe and Company, Inc. conducted its inaugural national Executive Compensation Survey for Colleges and Universities in November 2006.
Internal Revenue Code §409A
2007 brought the release of final regulations under Internal Revenue Code Section 409A which was originally enacted as part of the American Jobs Creation Act in late 2004. This new code section was intended to eliminate or at the very least mitigate abuses regarding deferred compensation, specifically the vesting of benefits and the distribution of benefits.
IRS Good Governance Principles
In February 2007, the Internal Revenue Service issued a document entitled “Good Governance Principles for 501(c)(3) organizations” which recommends that governing boards should be composed of individuals who are informed and active in overseeing a charity’s operations and finances.
Top line results announced for the Yaffe & Company, Inc.
2007 Health Care Executive Compensation Survey
Yaffe & Company, Inc. conducted its annual Health Care survey on Executive Compensation in January 2007. Approximately 300 survey responses were received from Hospitals and Systems located in the eastern, northeast and southeast sections of the United States.