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Form 1023: Reason for Requesting Detailed Information about Compensation and Other Financial Arrangements

Why does Form 1023 request detailed information about compensation and other financial arrangements with officers, directors, trustees, employees and independent contractors?

Part V of Form 1023 asks questions about compensation and other financial arrangements with officers, directors, trustees, highly compensated employees and highly compensated independent contractors (including certain related parties). These questions are aimed at determining whether benefits paid to such individuals are appropriate, that is, whether they are consistent with exempt status under section 501(c)(3).

Page Last Reviewed or Updated: 14-May-2014