If your organization receives donor contributions, you are managing others' money. To ensure that your organization is following proper procedures for managing and using the funds, the organization should maintain an investment policy. The key components of a basic investment policy include:
The recently redesigned Form 990 takes the spotlight in many discussions among leaders of not-for-profit organizations. Form 990 has not been significantly revised since 1979. The new revision is designed to better meet the IRS's tax compliance interests, and the transparency and accountability needs of the states, the general public, and local communities served by the organization.
Major changes to Form 990 include a front page summary that provides a snapshot of key financial operating information, a governance section, and revised compensation and related organization reporting. The new form increases the number of schedules from two for the old form, to 16 schedules.
In addition to fulfilling the new filing requirements, not-for-profit organizations should realize that the newly designed Form 990 will become a tool for the organizations to "tell their stories". These new Form 990s will provide various funding sources a much better picture of your operation and potentially help you promote your mission and your organization.