Federal credit unions, on the other hand, will not have to disclose this information because they are exempt from filing a Form 990.
The IRS, in justifying these additional disclosures, stated that “[g]ood governance and accountability practices provide safeguards to help ensure that the organization’s assets will be used consistently with its exempt purposes. This is a critical tax compliance consideration, especially for organizations that are subject to private benefit, excess benefit, and private inurement prohibitions. In addition, well-governed and well-managed organizations are more likely to be transparent with regard to their operations, finances, fundraising practices, and use of assets for exempt and unrelated purposes.”
The new Part VI, Governance, Management, and Disclosures, includes three sections: a) Governing Body and Management, b) Policies, and c) Disclosure. This information looks at “how and by whom an organization is governed, its governance and management policies and practices, certain relationships between or among its governing and management officials, and how the organization makes certain important information available to its constituents.”
For example, some of the questions appearing in Part VI are:
• Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee?
• Does the organization have a written conflict of interest policy?
• Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts?
• Does the organization have a written whistleblower policy?
To view Part VI, click on the image below.
There is not a sound public policy rationale for why federal credit unions should not disclose this information.
Since federal credit unions do not file a Form 990, NCUA should at least require federal credit unions to disclose the same information about their governance practices that other not-for-profit entities are required to file. This should not be that hard to do, since the IRS has already provided a template with the new Part VI.
Of course, Dr. Leggett, you would support all banks - including privately held - providing the same information to the public?
ReplyDeleteTo the person (above) who always uses "Dr. Leggett" as an attention-getting face-slapper, why are you cowering behind anonymity? At least explain yourself. Do you fear reprisals? Loss of job? What is it? Why?
ReplyDeleteThe option is there, Mr. Pilcher, for anyone to submit an opinion anonymously. I myself like to use a fake name, and how the hell would you know that it's fake. In fact, Jeffry Pilcher's not exactly a household name in the credit union industry, so who's to say that you are using your real name???
ReplyDeleteThis is an Internet blog, and that's how the Internet works. Get over it. If you have something of substance to say, say it; and stop worrying about credentials.
I use Dr. Leggett as a sign of respect for the person who has earned advance degrees. While I may not agree with him, he does have my respect. If that is a problem, then perhaps he should not use "Dr. Leggett" in his bio at the top of this page (which he does three times).
ReplyDeleteI would guess loss of a job. You point is silly though, in general that is what happens when you write a blog - you get anonymous posts like this one...
ReplyDeleteI would have thought that you would understand that as a master of branding. When you open up an open forum to the community you have to face an often faceless mass of critics.