Welcome to EO Radio Show – Your Nonprofit Legal Resource. This episode is the third in a series discussing insider transactions by exempt organizations. In this episode, I'll look closely at best practices for approving insider compensation decisions made by public charities and private foundations.

In episode 32, I gave a general overview of the federal laws regulating the transaction of business between a tax-exempt organization and its insiders. Insiders include directors, trustees, certain executives, substantial contributors, entities controlled by directors or substantial contributors, and their family members.

In episode 33, I took a deeper dive into conflict of interest policies and considerations in deciding which insiders need to comply with the organization's annual conflict of interest disclosure procedures.

Resources:

IRS Resources on Rebuttable Presumption for Compensation

IRS form 4720 and Instructions

IRS Schedule J, Compensation Information (Form 990)

EO Radio Show EP #2: Nonprofit Basics: Designators, Members, Directors, Officers: The Who’s Who of Nonprofit Governance

EO Radio Show EP #5:Nonprofit Basics: Navigating the Complex Rules That Describe A Public Charity

EO Radio Show EP #32: Nonprofit Basics: Insider Transactions and Nonprofits – What’s the Big Deal?

EO Radio Show EP #33: Nonprofit Basics: Conflict of Interest Policies and Best Practices for Approving Insider Compensation

If you have suggestions for topics you would like us to discuss, please email us at [email protected].

Additional episodes can be found at EORadioShowByFarella.com.

DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.