The effective management of conflict of interest issues is an essential element of sound risk management practices for both profit-making corporations and non-profit groups. In order to preserve the integrity of an association and its governance, it is wise to avoid financial transactions, business dealings,...
While many board members donate their services to an association, the law does not require it. The Tax Court has stated that, “they are entitled to reasonable compensation for their efforts." As such, compensation for service on an association board is quite common, but not...
We wrap up our four-part series on independent audits for associations with a guide to selecting the best possible person to perform the task. Selecting a qualified auditor is critical so an association can: Enjoy the benefits of an effective audit and Prevent wasting resources on someone...
Our four-part series on associations and the value of independent audits continues here with a nuts and bolts approach to setting up an independent audit. The final post will offer guidelines for hiring the right auditor for your association. How to Set Up an Audit Committee...
In the first part of our four-part series on independent audits for non-profits, we examined when they are necessary and why they are a good business practice even when they are not required by law. An audit serves many purposes, including acting as useful tool...
When we hear the word “audit,” most of us think of a financial audit by the IRS. There are, however, many kinds of financial audits that are significant in non-profit association management: Contact Monitoring Internal Review External Management Review IRS Review In our four-part series Audits for Associations, you’ll...
There has, perhaps, never been a greater need for philanthropy in this country than at this time. In response to that need, on July 17th, the United States House of Representatives passed the “America Gives More Act of 2014,” a game-changing legislative package that will...
Association board members who efficiently review and vote on issues of importance do a great service to the organizations they serve. They create a forward momentum that propels activities forward rather than allowing the organization to grind to a halt, unable to evolve. Yet one of...
Millions of companies and executives worldwide look to Bill Gates for inspiration regarding success and profitability, and with good reason. His convictions regarding what makes or breaks a business have proven out in the marketplace time and time again. Microsoft is a profit giant, but can...
A previous post offered a primer on non-profit board functions. It outlined five key activities of every effective NPO board member: Determine the mission and purpose of the organization Select an executive director of administrator Provide feedback, report, and review for the chief executive Foster effective organization planning Ensure an...