February 9, 2005 -- Here are some recent questions raised in the not-for-profit arena:

·         Should not-for-profit organizations that are required by law to have audited financial statements, perhaps as part of state filing requirements, also be required to make those audited statements available for public inspection or include them as part of their Form 990 or 990-PF filing?

·         Should a board similar to the Public Companies Accounting Oversight Board (PCAOB) be created to set accounting standards for not-for-profit organizations?  

·         Should not-for-profit organizations (NPOs) other than religious organizations that are not required to file a Form 990, 990 -EZ or 990-PF be required to file an annual one-page notification form with the IRS to disclose board members, total revenue and expenses and other information?

·         Should information be shared between federal and state officials?

These are among the questions that will be addressed by The Panel on the Nonprofit Sector.  The Panel is comprised of leaders from major not-for-profit foundations and public charities and  was formed at the encouragement of the U.S. Senate Finance Committee.  Its working and advisory groups have posted draft recommendations that fall into these broad categories:

• Improving transparency and financial management
• Improving government oversight and enforcement
• Improving governance and self-regulation
• Compliance requirements for small organizations

A Senate Finance Committee staff proposal that would impact many organizations would require audited financial statements for NPOs with gross receipts over $250,000.  In response, one working group suggested a federal requirement for GAAP basis audited financial statements for public charities with $2 million in revenue (excluding certain government funds) and private foundations with $10 million in assets.   Another group suggested audits for organizations with revenue over $500,000.

All of the preliminary recommendations and related discussions are posted at www.nonprofitpanel.org/workgrouprecs/firstrecs.  Public comment is invited through the website but must be received by February 18, 2005 .  Comments can also be made at the public meetings that will be held throughout the country in March and April. 

For more information, contact Rachel Winslow at 215-564-1900.

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