NPO compensation in the spotlight: best practices help tax-exempt entities avoid penalties.

Summary

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Nonprofit organizations

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NPO compensation in the spotlight: best practices help tax-exempt entities avoid penalties.

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EXECUTIVE SUMMARY

* Intermediate sanctions impose a penalty tax on key employees of certain tax-exempt organizations who receive unreasonable compensation, and on managers who approve it knowingly.

* Intermediate sanction regulations provide a framework of appropriate policies and procedures regarding compensation for tax-exempt organizations.

* Intermediate sanction rules require organizations to publicly disclose on Form 990 that intermediate sanctions have been imposed.

* The amount of required disclosure continues to grow. Changes to Form 990 in recent years have generated additional reporting requirements and a rede...

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