Insights
Publications

Nonprofit Basics: Best Practices for Approving Insider Compensation Decisions

March 20, 2023 Podcast
EO Radio Show – Your Nonprofit Legal Resource

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.

Firm Highlights

News

Farella Braun + Martel Attorneys Named to 2023 Northern California Super Lawyers and Rising Stars

Thirty-eight Farella Braun + Martel lawyers were named to the Super Lawyers and Rising Stars lists of top attorneys in Northern California for 2023. 2023 Farella Northern California Super Lawyers: Carly Alameda – Business...

Read More
Publication

Refresh: Setting up a New Charity for Disaster Relief

Welcome to  EO Radio Show – Your Nonprofit Legal Resource.  I'm Cynthia Rowland, and this is episode 60 of EO Radio Show . This week's episode is a refresh of episode 10, first recorded...

Read More
Publication

In the Weeds With New Supporting Organization Regulations

Welcome to EO Radio Show - Your Nonprofit Legal Resource . I'm Cynthia Rowland, and today’s episode discusses highly technical Supporting Organization rules for public charity qualifications for charitable organizations. Last year, episodes 23 and...

Read More
Publication

New Proposed Regulations Defining Donor Advised Fund Terms

Welcome to EO Radio Show - Your Nonprofit Legal Resource . Episode 63 explores new proposed regulations important to the administration of Donor Advised Funds (DAFs). The Internal Revenue Service and the Treasury Department...

Read More
Publication

A Summary of New Laws Coming for California Employers in 2024

In 2023, California has adopted several new employment laws either introducing new employee protections or codifying existing practices into state law. With these changes, employers will need to examine and adjust some of their...

Read More
News

Farella Lawyers Recognized in The Best Lawyers in America® 2024 Edition

Read More
Publication

It Wasn’t Me, It Was the AI: Intellectual Property and Data Privacy Concerns With Nonprofits’ Use of Artificial Intelligence Systems

In today's rapidly changing technological landscape, artificial intelligence (AI) is making headlines and being discussed constantly. To be sure, AI provides a powerful tool to nonprofits in creating content and exploiting for countless cost-effective...

Read More
News

Farella Braun + Martel Earns 2024 Best Law Firms® Rankings

Read More
Publication

Nonprofit Quick Tip: State Filings in Maine and Vermont

Welcome to  EO Radio Show – Your Nonprofit Legal Resource. I'm Cynthia Rowland, and episode 59 is the seventh in a series of Quick Tip episodes focusing on the details of state registration of...

Read More
Publication

An Introduction to DAFs and Overview of the Newly Proposed DAF Regulations

Welcome to EO Radio Show - Your Nonprofit Legal Resource. I’m Cynthia Rowland, and episode 62 describes new proposed regulations important to the administration of donor advised funds. The Internal Revenue Service and the...

Read More