In attempt to significantly improve the financial transparency of nonprofit organizations, the IRS expanded required disclosure in the Form 990.
In the article “Nonprofit Disclosures to IRS Not Living up to Expectations” Michael Cohn of Accounting Today, an online business news publication for the tax and accounting community, discusses the findings of a study conducted by CPA firm Tate & Tryon that analyzes the financial results and responses to key governance questions on the revised Form 990.
According to Cohn, the study finds that the IRS has not been successful in significantly improving nonprofit’s financial transparency from 2008 to 2010 because nonprofits are not complying with the “good governance” practices outlined at the release of the new Form 990.
The article states that nonprofits may be reluctant to post the Form 990 because they must list compensation of top executives and highly compensated staff on the form.
Financial reporting for transparency can be extensive, but with the financial management software Serenic Navigator, nonprofits are better able to deliver reports at all levels.