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Form 1023: Required Information about Qualifications and Duties

What type of information must be provided when describing the qualifications and duties of officers, directors, trustees, five highest compensated employees and five highest compensated independent contractors?

Volunteer officers, directors and trustees may serve because they believe in an organization’s mission without having a specific area of expertise.  In this situation, the individual’s history relevant to his or her involvement with the organization would be appropriate. Other volunteer officers, directors and trustees may bring specific expertise. In this situation, you should describe specific expertise. We ask for information about the qualifications and duties of volunteer officers, directors and trustees to help inform us about whether the organization is likely to serve impermissible private interests. 

The following are examples of descriptions of qualifications and duties for volunteers:

  • Mr. Jones is a volunteer director. He is a recently retired high school English teacher. He is keenly interested in learning about environmental issues and in helping us to accomplish our mission of protecting our local community’s water resources. Mr. Smith is the organization’s recording secretary. His duties are spelled out in our bylaws, and include attending meetings of our board of directors and voting on board decisions. 
  • Ms. Smith is a volunteer director. She is a partner in the for-profit XYZ firm that specializes in analyzing and reporting on water quality issues for local governments in our state. Ms. Smith has extensive knowledge about water quality issues. Her training includes undergraduate and graduate work in water quality issues at ABC College. Ms. Smith is the organization’s vice president.  Her duties are spelled out in our bylaws, and include attending meetings of our board of directors and voting on board decisions. Pursuant to our conflict of interest policy, Ms. Smith has agreed that she will not vote on any matter involving a conflict of interest between her duties as a director and her position with XYZ.

Organizations should provide information about the qualifications and duties of paid officers, directors, trustees, five highest compensated employee and five highest compensated independent contractors who receive or will receive compensation of more than $50,000 per year.   In this situation, a description of the specific training or other history that resulted in employment of these individuals together with the duties they are expected to perform would be appropriate to help inform us about whether the organization is likely to be overcompensating any of these individuals.

  • Mr. Ortiz is a member of the board of directors. He is also our president.  His qualifications include graduating with a BS degree in general science from ABC College. He served as a fireman for ten years with the City of X during which time he rose to the rank of assistant fire chief and attended numerous clinics on fire prevention. He held the position of executive assistant to the president of the Y nonprofit organization immediately before joining our organization. His duties are spelled out in our bylaws, and include attending meetings of our board of directors and voting on board decisions.

Summaries of relevant qualifications and duties are usually sufficient for volunteers or paid officers, directors, or trustees. However, if an organization has an unusual compensation arrangement in terms of amounts or methods of computing compensation, descriptions of qualifications and duties would include the special circumstances that explain the arrangements.

Page Last Reviewed or Updated: 14-May-2014