Understanding Ongoing Compliance Obligations for Non-Profits
As a non-profit organization, you have a lot of responsibilities to manage. In addition to fulfilling your mission, you also need to comply with various legal requirements. These ongoing compliance obligations are essential to ensure that your organization operates legally and ethically.
Here are some of the most crucial ongoing compliance obligations for non-profits:
Maintaining Accurate Financial Records
Non-profits must maintain accurate financial records to ensure compliance with tax and reporting requirements. This includes keeping track of all income and expenses, creating a budget, and producing financial reports.
Filing Tax Returns
Non-profit organizations must file tax returns with the IRS every year. The type of return you need to file depends on your organization's size and revenue. For example, small non-profits with less than $50,000 in gross receipts can file Form 990-N, while larger organizations must file Form 990.
Conducting Regular Board Meetings
Many states require non-profits to hold an regular meeting of members or directors. These are an opportunity to review the organization's activities, elect new board members, and make any necessary changes to the bylaws.
Reporting Changes to the IRS
Non-profits must report any significant changes to the IRS, such as changes to the organization's name, address, or mission. Failure to report these changes can result in penalties or loss of tax-exempt status.
Complying with State Regulations
Non-profit organizations must comply with state regulations in addition to federal requirements. This includes registering with the state, filing annual reports, and following state-specific rules for fundraising and governance.
Get in Touch With a Skilled Nonprofile Attorney in Dallas
These ongoing compliance obligations can be overwhelming, but it's essential to stay on top of them to avoid penalties or loss of tax-exempt status. If you need help managing your non-profit's compliance obligations, Perliski Law Group can assist you. Contact us today at (214) 865-7542 to learn more about our services.