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As we all prepare for our annual IRS 990 reporting, it is important to be reminded of the federal requirement for policies and procedures around financial internal controls, conflict of interest, and whistle blower safeguards.

All nonprofits with gross receipts in excess of $25,000 a year are required to file a federal 990 or 990-EZ. In addition to demonstration of sound “Internal Controls” or “Separation of financial duties,” this filing now also requires demonstration of policies and procedures around “Conflict of Interest” and “Whistleblowers,” in the wake of debacles from Enron to Madoff.

We refer you to the Minnesota Charities Review Council for a variety of accountability resources.

In addition, The Nonprofit Assistance Fund provides an excellent sample of a financial policy that offers guidelines on financial checks and balances.

Finally, The Minnesota Council of Nonprofits offers an excellent Sample Financial Procedure as well as a variety of other Financial Templates and samples to help us all maintain the best standards in our financial practices and . . . stay legal!