Whistleblower Policy

The redesigned Form 990 asks a number of new questions about policies and procedures. One of the policy questions asks if the organization has a written whistleblower policy?

Question…What is a whistleblower?

According to www.dictionary.com - a person who informs on another or makes public disclosure of corruption or wrongdoing. One famous whistleblower is Jeffrey Wigand, who exposed the Big Tobacco scandal, revealing that executives of the companies knew that cigarettes were addictive and approved the addition of carcinogenic ingredients to the cigarettes. Wigand’s story was the basis for the 1999 movie The Insider.

So why is the IRS interested in tax-exempt organizations having a whistleblower policy? This type of corporate policy encourages staff and volunteers to come forward with credible information on illegal practices or violations of adopted policies of the organization. The policy specifies that the organization will protect the individual from retaliation, and identifies the staff, board members or outside parties to whom such information can be reported.

Does your organization have a whistleblower policy? Google for various “free samples” or call me.