 What do trustees need to know about the New IRS Form 990 and its related schedules? This question is the focus of a Center Voices article to appear in the July issue of Trustee magazine. Below, you’ll find a sneak peak of the article, titled The New IRS Form 990 and Schedule H: What Trustees Need to Know.
Since the new Form 990 includes sections designed to give the IRS a picture of an organization’s governance structures, author Nicholas Wolter, M.D., discusses the redesign of the form in the upcoming Center Voices with specific focus on the implications the redesign will have for boards. Dr. Wolter is CEO of Center member Billings Clinic, located in Billings, MT.
Implications for boards are many with the redesign of Form 990, which now asks several questions about board structure, including questions regarding the independence of the board and whether board members, officers, and key employees are required to annually disclose possible interests that could give rise to conflicts. It also solicits information about compensation details for top management, officers, and key employees.
In addition, the new Schedule H asks for details about spending on services and programs the filer maintains to address the needs of its community. Specifically, it seeks detailed numerical and financial information related to community benefit, management companies, and joint ventures, as well as general information about health care needs assessment, emergency department policies and procedures and distribution of information about financial assistance.
Wolter notes that because the new IRS form paints a financially focused portrait of the organization and its services, it is important for hospitals to supplement for their communities details regarding the benefits and services they provide, so that a complete and accurate portrait is drawn. He suggests that hospitals which do not already have one should develop a communications plan that includes a comprehensive explanation of the services and benefits they offer to the community.
To understand the significance of the form redesign, make sure to read the article in its entirety in the upcoming issue of Trustee. Center members will have access to the complete article via the publications section of the Center’s Web site beginning July 1.
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