Form 990 and corporate governance
One of the public objectives of Form 990 is to make the policies and practices of nonprofit organizations more transparent. Form 990 includes disclosures regarding conflicts of interest and related party transactions.
Effective boards usually include individuals who have relationships and affiliations that may raise questions about perceived conflicts of interest. Although many such potential conflicts are ultimately deemed inconsequential, every IUF representative (director, officer, employee, or agent) has the responsibility to ensure that the board is made aware of situations that involve personal, familial, or business relationships that could create a real or perceived conflict of interest.
Every year, we make a written request to our officers and directors to disclose known conflicts of interest, as outlined in our Conflict of Interest Policy, and related party transactions, as defined by the IRS. These disclosures are reviewed by our staff and the Audit Committee. The board and all relevant board committees are notified of any action required based on the disclosures received.
While the IRS only requires that we report related party transactions which exceed $100,000, we believe good governance requires full accountability regardless of dollar amounts. Therefore, we are providing an additional disclosure of all known related party transactions that fall below the IRS reporting threshold.