Central Arizonans for a Sustainable Economy (Case)

“The members of the organization are community members who have signed up to become members through the organizations website. The members do not have voting rights and pay a monthly contribution to the organization.”

“The executive director of the organization distributes a pdf copy of the 990 return to all board members for review and comment prior to being filed.”

“At each board meeting, if there is a discussion of selecting or engaging a vendor or service provider, all in attendance are asked to recuse themselves from this discussion if there could be a perceived conflict. Annually, the organization reviews and discusses the conflict of interest policy and requests that each board member list and acknowledge any known conflicts.”

“The board may hire and compensate individuals for necessary services rendered to the organization so long as such compensation is reasonable. The board shall determine reasonable compensation amounts based upon compensation paid by similarly situated nonprofits for like services. The board may rely upon salary studies, as well as data regarding compensation paid by peer organizations of similar size to determine reasonable compensation. The terms of such compensation and information relied upon shall be recorded in writing. An individual who is a member of the board who receives compensation, directly or indirectly from the organization for services, is precluded from participating in discussions or votes pertaining to their own compensation. Currently, all officers and directors are volunteers.”

“The organization will provide in a timely manner, copies of tax returns, financial statements, and governing documents including its conflict of interest policies when requested in writing or in person.”

“The exectuvie director is paid by an unrelated thrid party of the filing organization. Per irs regulations, the compensation attributable to the work performed for the filing organization or its related party is reflected on part viii, section a, and schedule j, but is not reportable on part ix.”

“The organization is in a common paymaster relationship with a party reported on schedule r as a related party. Per irs regulations, the salaries/wages/bebenfits attributable to the related party are reported by the related party during their filing. These amounts are excluded from reporting on the filing party return. The full payroll taxes are the responsibility of the filing party and therefore, are reported on part ix, line 10. Schedule r reports the amount attributable to the related party as it pertains to employee expenses.”