Nonprofit organizations have several moving pieces that could change from year to year. Below is a list of some of the details which should be revisited on an annual basis to ensure accuracy and completeness. 
- Policies – Evaluate what your organization has in place and consider adopting additional policies recommended by the IRS.
- Conflict of Interest – This should be reviewed and signed each year by board members and personnel.
- Form 990 Board Review – The IRS requires the Board have a policy in place to review the Form 990 prior to filing.
- Whistleblower – All organizations should adopt a whistleblower policy as a safeguard to help prevent fraud. This policy should be reviewed each year and updated as necessary.
- Document Retention and Destruction – Review your organization’s policy and ensure it is being followed and meets IRS requirements.
- Compensation – Verify that the process of determining compensation remains reasonable.
- Board Meeting & Committee Documentation – All board meeting and committee meetings should have minutes that are retained permanently.
- Consider each of the following items to ensure your organization is meeting expectations and maintaining accurate records:
- Endowment funds
- Classification and terms of net assets – check for any reclassifications or changes
- Insurance coverages – confirm proper and adequate coverage
- Bank covenants and loan agreements
- Grant cycles – understand and develop expectations on when grants may be received for budgeting purposes
- Lease agreements
- Other contracts
- Bylaws – update as necessary for any changes in the organization
- Donations – Ensure all required donation acknowledgements have been sent to donors and match records.
- Accounting procedures – Confirm all accounting procedures are documented and up to date. The more detailed these procedures are, the smoother the nonprofit’s audit will go. Having up-to-date accounting procedures will also be beneficial in the event of any turnover in the organization.
These are just some of the items to assess each year to help your nonprofit organization run smoothly. A few of these are mandated by the IRS, which means your organization could be in jeopardy of losing its tax-exempt status if not followed. Reviewing these items on an annual basis will help your organization to stay organized and on top of things.
Please contact the Not-for-Profit Niche team at Gilliam Bell Moser LLP for further guidance.
