In general, payments made by a nonprofit organization to consultants or contractors who qualify as “United States persons” under the Internal Revenue Code are subject to Form 1099 reporting, including U.S. citizens based abroad. Payments made to foreign persons are generally not subject to Form 1099 reporting but may be subject to withholding and reporting under Form 1042 and 1042-S.

Most treasurers for nonprofit organizations do not venture outside their traditional role of stewardship of the organization’s financial assets. Financial stewardship is important, but the perspective of the treasurer has value far beyond this singular role. Treasurers and the organizations they serve both need to correct this narrow perception and look for opportunities to expand the sphere of influence of this important officer position.

Despite common misconceptions, Treasury Regulations and Internal Revenue Service (IRS) guidance provide that most scholarship payments provided by nonprofit organizations are not required to be reported by the payor on Form 1099 (or Form W-2), regardless of whether the scholarship is a “qualified scholarship” or taxable to the recipient, so long as the primary purpose is to aid the student in pursuing their studies and not as compensation for past, present, or future services.

Most nonprofit organizations are required to submit a federal tax filing for their first partial or short tax year even if their tax-exempt status has not yet been approved, but there is no monetary penalty for failure to file if the organization qualifies to file the Form 990-N (e-postcard). Nonetheless, it is usually prudent to file Form 990-N for the first tax year anyway.

It is well-known that Board members are subject to fiduciary duties in their oversight and decision-making role, among other rules that apply to nonprofit organizations. However, the practical reality of how these requirements are scrutinized, applied, and enforced is less understood. This article provides a brief overview of some common ways that Board decisions and actions could be challenged in court.

In-person meetings and events are completely different animals from virtual meetings and events and that difference needs to be recognized and respected. In-person and virtual formats work best when they are exclusive and not combined into a “hybrid” format. While hybrid meeting and event formats may be used occasionally in response to unexpected disruptions, they should not be viewed as the new normal or a long-term option for the future.

The chief executive of a nonprofit organization usually has the primary responsibility for managing staff and human resources issues, including the development and implementation of most employee handbook policies. With some exceptions, nonprofit Boards are not expected to review and approve staff policies, but the Board’s oversight role includes a duty to take reasonable steps to confirm these policies are in place and updated periodically.

As the default format for Board and committee meetings has shifted to a virtual platform, nonprofit organizations must be careful to not let these regularly recurring governance meetings become stale and boring. It is time to freshen up these virtual governance meetings with a renewed focus on the smart use of time, attendee satisfaction, and maximizing impact and engagement.