Following is part of a blog that I strongly suggest that you, your colleagues and friends associated with nonprofit or trustee organizations read carefully. As you read it, pleas keep the following in mind:
- I think the situation presented here is more common than most directors/trustees think. As a layperson, I am surprised that the court did not spread the fine among all the directors.
- The chairman was clearly trying to support a nonprofit in trouble. Perhaps he was so dedicated to the mission that he was trying to do everything possible to save it?
- Not Shown here is the fact that, “[T]he chairman is burdened with proving that they (the IRS) are not correct. … The law does not require the individual to have complete control over the finances, only what the court calls significant control.”
For more insights in how to avoid such situations, review these items on my blog site. Other items also may be of interest http://bit.ly/yfRZpz .
Nonprofit Directors & Trustees: Are You Aware of the IRS 990 Form?
Attn: Crisis Planners – A Leadership Plan For a Nonprofit Organization in Trouble
What To Do About Weak Nonprofit Board Practices
Your Dysfunctional Nonprofit Board – What to Do
Nonprofit Management/Governance – Avoiding Fraud – Internal Controls
For the full blog see: http://www.mercadien.com/index.html
Nonprofit Directors/Trustees Alert: Volunteer Chairman Held Liable for Nonprofit’s Unpaid Payroll Taxes
by Sherise D. Ritter, CPA, CGFM, PSA
A recent tax court case held that a volunteer chairman of the Board of Trustees is personally liable for a nonprofit organization’s unpaid payroll taxes. This is a scary development (more…)