Not-for-profit board officers, directors, trustees and key employees must avoid conflicts of interest because it’s their duty to do so.
If yours is like most not-for-profit organizations, you depend on a big annual event to raise significant funds or attract new members and supporters.
Investment fraud, such as Ponzi schemes, can cause significant financial losses for not-for-profits. But the harm it can cause an organization’s reputation with donors and the public may be even worse.
More and more not-for-profits are joining forces to better serve their clients and cut costs. But such relationships can come with complicated financial reporting obligations.
Not-for-profits that ignore the IRS’s private benefit and private inurement provisions do so at their own peril. These rules prohibit an individual inside or outside a nonprofit from reaping an excess benefit from the organization’s transactions.