Compensation: nonprofits also urged to heed IRS scrutiny.With not-for-profit pay practices being scrutinized by the Internal Revenue Service (IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ), charities and private foundations need to be proactive in ensuring their practices are compliant and sound, warns the Hay Group  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . , a global organizational and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a . By failing to do so, nonprofits could face penalties and resulting bad publicity. Through extensive research with not-for-profits, Hay has found that many charities and tax-exempt institutions are unprepared for a high level of IRS scrutiny and resulting dissatisfaction with their compensation practices. "There are a number of key questions that boards and executives must consider when developing these plans or pay potential penalties," says Adam E. Meyers, Vice President and Director of Hay Group's Not-for-Profit practice. Hay has identified 12 questions for not-for-profit management and boards to consider when establishing executive compensation and benefit programs. These questions address the organization's internal and external competitive environment, as well as its operational strategy and performance. 1. Are compensation plans, approval processes and reporting sufficiently transparent? 2. Is the board governance process on compensation appropriate? 3. Is there a conflict between benefit programs and all-employee benefit policies? 4. Are there severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments 5. Are compensation programs tax-compliant? 6. Is the compensation internally equitable? 7. Is it appropriately balanced for both short- and long-term reward and motivation? 8. Is compensation reflective of the scope of operations? 9. Does the plan encourage and reward ethical and appropriate behaviors? 10. Are rewards and goals tied to significant improvements in key metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. ? 11. Are plans both comprehensible com·pre·hen·si·ble adj. Readily comprehended or understood; intelligible. [Latin compreh and comprehensive? 12. Does pay correlate with performance? |
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