Nonprofit Accounting Basics

Best Practices

Note: Articles published before January 1, 2017 may be out of date. We are in the process of updating this content.

The Internal Revenue Service believes that promoting best practices in the areas of governance, management and disclosure will lead to a higher level of federal tax law compliance. As a result, Part VI of the core form of the 990 is devoted to questions of this nature.

For example, Sarbanes-Oxley imposes criminal liability on all organizations for retaliation against whistleblowers and for the destruction of records with the intent to obstruct a federal investigation. Therefore, there are questions, requiring a yes or no answer, asking if your organization has a whistleblower policy and a document retention policy.