Governance of nonprofits
By Laurence Wiseman, Washington
Published on Thursday, October 4, 2007
To the Editor:
Professor Meir Kohn needs to attend a few classes himself -- on non-profit governance ("ExtraCurricular.," Oct. 3). He'd learn that the Congress and the IRS have long sought to assure that non-profits, including colleges, are subject to careful scrutiny by the Feds and the public. As CEO of a mid-sized conservation organization, my compensation and that of my senior colleagues is reported to the IRS and widely publicized -- down to reimbursements for parking and a hundred-dollar annual contribution toward a gym membership. Every other aspect of our financial operations is part of the public record.Not just where our money comes from, but where it goes and whether it serves the tax-exempt purposes for which we're chartered. And that's just the beginning. The IRS has just proposed new reporting rules that mirror even more closely those required under Sarbanes-Oxley. We support the goal. But we estimate it will take us twice as long and cost nearly twice as much to complete the form.
Transparency is great, but let's remember non-profits are here to accomplish a lot more than just filling out federal paperwork.