Hot Topics презентация

Reporting Considerations

Hot Topics in Compensation and Benefits for Not-for-Profit Entities, for a focus on latest developments and pressing concerns.

Webcast insights originate in The Grant Thornton
2014 Nonprofit Compensation Survey,
where you’ll find up-to-date
critical compensation and
benefits data, trends and insights
to assist in your compensation
and benefits planning.

Find webcast info and read about the survey at www.grantthornton.com/comp-benefitssvy2014

provide incentive compensation
based on the revenues or net earnings of the organization and any related organization?
Did the organization provide any other type of nonfixed compensation?
Column (B)(iii) – Bonus and incentive compensation amount

transaction can occur even if amount is reasonable
Occurs if disqualified person can receive additional compensation without providing proportional benefits that contribute to the organization's accomplishment of its exempt purpose

Not included in final regulations

to percentage of increase in portfolio value
Faculty member receives a percentage of royalties received by university for his/her invention

Examples

Learn more about compensation incentives from our NFP leaders

salaries at slightly less than $130,000 a year if a charity received more than two-thirds of its budget from the state
The New Hampshire attorney general publically criticizes high salaries earned by hospital executives and has meetings scheduled to "encourage a new approach to compensation"
Illinois announces plans to introduce a measure that would make it easier to "spot" high salaries paid to leaders of charities who earn most of their income from for-profit subsidiaries

“New Era in Executive Compensation Intensifies"

disqualified persons, critical employees, etc.

Governance

Expectations

Governance

Comparable Market Development

Governance

for NFP's today

Ties to W-2 Box 5

As "accrued" or "earned" & includes actuarial increases in DB plan

Is this an "apples to apples" comparison across different organizations?

Everyone ok with that?

Compensation reporting…more information for more people

NFP leaders

rebuttable presumption of reasonableness

Know who is a "disqualified person" at your organization
Understand your organization's comparable market data (e.g., survey data, peer group)

Rebuttable presumption of reasonableness

conflict of interest policy for all members of the compensation committee
Establish a formal compensation committee charter
Adopt a formal compensation philosophy for your organization, and follow it
Ask, Why?

Have an independent compensation committee?

Co-Practice Leader
Atlanta, GA
ken.cameron@us.gt.com
+1 404 704 0136

Eddie Adkins
Partner
Washington National Tax Office
Washington, DC
eddie.adkins@us.gt.com
+1 202 521 1565

Mike Monahan
Assistant Managing Principal, New York/New England Territory
CBC and PWS Tax Practices – Principal-in-Charge
National Not-for-Profit & Higher Education CBC Co-Practice Leader
New York, NY
michael.monahan@us.gt.comhan@us.gt.com
+1 212 542 9860

Learn more from our NFP leaders

Contact

information

Hot Topics in Compensation and Benefits for Not-for-Profit Entities

Read the executive summary of The Grant Thornton 2014 Nonprofit Compensation Survey

www.grantthornton.com/comp-benefitssvy2014