New Form 990 is Must Reading for Boards

The new IRS Form 990, the primary way not-for-profits report their performance to the IRS, dramatically expands what hospitals must report. Examples of what’s new include:

  • How many directors are “independent” (using new IRS definition)?
  • How much community benefit does the hospital provide (using new standardized definitions)?
  • How does the board determine executive compensation?
  • How is the board conflict of interest policy enforced?
  • Do board members have business or family ties with each other?
  • Does the board review the 990 before it’s submitted IRS (hint: don’t answer “no”)?

The summer issue of Great Boards will dissect the new Form 990 and offer expert opinions on what boards should do NOW to prepare. In the meantime, see a recent speech from IRS’ Director of Exempt Organizations Lois Lerner and full copies of the form, schedules, and instructions on the IRS website.

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