Board Café

THINKING ABOUT TAXES?

Why do we always think about tax deductions on April 14? Now's a good time to do a few things that could help on your tax bill next year. If you itemize, don't forget you can count out-of-pocket expenses related to your board and volunteer services, such as parking at a meeting, mileage (14 cents/mile for 1998), unreimbursed phone calls, etc. The IRS has a great website with lots of info on this topic. See www.irs.ustreas.gov/forms_pubs/pubs/p172607.htm.

IS YOUR BOARD ABOUT TO MAKE A REALLY BAD DECISION?

What's the right thing to do when you strenuously object to something the rest of the board wants to do? Or you may think a difficult choice is the right one, but you want to go on record with your concerns. I remember one time I was in a minority of two when a board I was on was about to lose control of a property we had managed badly. One recourse is to write your objections into a letter to the board, read it aloud at the meeting where the vote takes place, and have it placed into the minutes. At least your letter will be read by those board members who are absent, and it will become part of the organization's permanent record.

APRIL HUMOR

Before settling on the BOARD CAFÉ as the name for this newsletter, we had fun thinking of names for a newsletter for nonprofit board members. Here are the nominees we DIDN'T pick: Board Out of My Mind, Ironing Board, Board-alaise, Board to Tears, Board Silly, Board-eaux, Board-erline, and our personal favorite . . . Board Stiff.

WE'D LIKE TO HAVE YOUNG PEOPLE ON OUR BOARD, BUT . . .

Some nonprofits with youth programs have begun to invite young people onto their boards, not only to bring a direct, youthful perspective into the organization's governance, but to help clients or other young people to develop leadership skills. But how do you do this successfully? Youth On Board has given a great deal of thought to this issue and developed some models for how to make it work for all parties. You can get a copy of their manual ($18) about how to involve young people by calling Youth On Board, 617-623-9900 ext. 1245 or email youthboard@aol.com.

Now for this issue's "Big Idea at the Board Café"

1. Statement of Functional Expenses (Part II): In this section the organization must classify all expenses as one of three types: Program Services, Management & General, or Fundraising. We know one organization that put almost all expenses into "Management & General" because their work was done by management-level staff; in fact, such work was more appropriately classified as "Program Services." If the percentages for either Fundraising or Management & General appear too high, go back and make sure that your organization used appropriate guidelines when classifying expenses.
   
   
2. Addresses of board members: Part V of the 990 asks for a "list of names and addresses of officers, directors, trustees, and key employees." It is NOT necessary to list home addresses, and many board members and staff members feel that doing so encourages invasion of privacy. It IS appropriate to use the organization's business address in this section for all board and staff members.
   
   
3. Let your work show your mission. In Part III, "Statement of Program Service Accomplishments," the 990 asks for a statement of the organization's purpose and a list of program activities (examples: public awareness campaign, medical research work, home meal delivery, youth training, forest trail construction). Take the time to be sure that what you say here is what you would say to the press or the public or the IRS . . . after all, that IS the audience for the 990.
   
   
4. Check the math. (Especially if you're an education organization!) In one study of 990s, 67% had significant arithmetic errors.
   
   
5. Remind staff and other board members that Section 1D of Schedule B need NOT be disclosed to the public. Schedule B (an attachment to the 990) lists the names of major donors and the amounts given. If someone asks for your organization's 990 and Schedule B, you are required by law to give it to them, but you do NOT need to give them Section 1D of Schedule B that has this information.
   
   
6. Make sure it's filed on time. Failure to file on time results in rapidly accruing penalties, and board members could be held individually liable for those penalties (even if you have Directors & Officers liability insurance). The board president should check to be sure it is filed on or before the due date (again, 4 and 1/2 months after the close of the fiscal year).

Thanks to Bill Levis of Baruch College, Jude Kaye of CompassPoint Nonprofit Services, Peter Swords of the Coordinating Committee of New York, and Pat Read of Colorado Association of Nonprofit Organizations for contributing to this article.

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