Accounting Firms Calculate New Business in Change for Non-Profits

Publicly traded firms are not the only target under the federal government's accountability gun. Beginning with the 2008 tax year, non-​profit organizations must file a new Form 990. The new features of the redesigned form show the IRS's intent to mandate ethics in non-​profits. This includes:

  • Establishing conflict-​of-​interest policies for board members
  • Demonstrating proof of a whistle-​blower policy
  • Revised record retention policy

Accounting firm Grant Thornton reveals that non-​profit compliance is lagging. The following percentages of organizations do not have:

  • Updated record-​retention policy  — 19%
  • Updated gift-​acceptance policy  — 30%
  • Updated whistle-​blower policy  — 29%

Remind your accounting and audit firms that they may be able to increase business with a direct mail campaign to non-​profit clients which outlines the importance of the new Form 990.

[Source: Grant Thornton release, December 2008] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.