VIDEO Q&A for Subscribers: November 2024 [SUBSCRIBERS-ONLY]
Ben and Mike answer questions from subscribers about the spending of operating reserves, conflicts of interest related founders of a nonprofit becoming staff, deciding between filing the Form 990-EZ and the Form 990, and legal issues raised by the moving of funds between related organizations.
CHAPTERS:
00:00 - Intro and disclaimer
00:40 - Best practices regarding spending of operating reserves
02:51 - How budget increases automatically lower operating reserves
04:10 - The importance of spending policies
08:04 - Whether a nonprofit can have too much operating reserves
09:56 - Whether founders of a nonprofit can serve as Board members if they intend to be staff
14:38 - The importance of having independent Board members to oversee and approve compensation
15:40 - Deciding between filing the Form 990-EZ and the Form 990
18:12 - The storytelling advantages of the Form 990
18:40 - Whether a subsidiary 501(c)(3) organization can transfer funds to a parent 501(c)(3) organization
24:50 - The importance of transparency and logic when moving funds between related organizations
27:04 - Piercing the corporate veil and other legal risks
FURTHER READING:
Operating Reserve Policies are a Perfect Vehicle for Targeting Your Budget’s Bottom-Line
Q&A #107 – Should a majority of a nonprofit’s Board members be independent
Q&A #15 – Is it a good idea to switch to filing the Form 990-EZ to save costs?
