Form 1023: Required Information about Compensation and Other Financial Information

 

What information does Form 1023 request about compensation and other financial arrangements with key individuals?

Form 1023 asks questions about how the organization establishes compensation for key individuals. It defines compensation as all income including salary, wages, deferred compensation, retirement benefits, fringe benefits, educational benefits, low interest loans, payment of personal expenses, and bonuses. It also asks about family and business relationships and transactions that could indicate impermissible private benefit. It asks about conflict of interest policies or practices and references the sample policy in Appendix A. It asks the applicant to disclose transactions with related parties, and how compensation is determined to be reasonable.