With an ever-changing slate of regulatory rules and requirements, it can feel like you spend more time on paperwork than your organization’s mission. That said, compliance can’t be overlooked. Maintaining good standing is essential to applying for licenses, obtaining grants and public funding, preserving your organization’s reputation, and its right to solicit.
In terms of general compliance, confirm your organization is in good standing with each Secretary of State where your corporation is registered and in which you conduct business.
You should appoint a registered agent for all states in which you operate. It might also be the cases for states in which you fundraise. You should also check on each state’s exemption thresholds and filing fees. Ongoing charitable registration compliance requires continuous attention and expertise, according to Sharon Cody, partnership manager at government and licensing and technology firm Harbor Compliance.
You have to meet charitable disclosure requirements. Some 25 jurisdictions require disclosure statements which are separate from those required by the Internal Revenue Service (IRS).
You must understand commercial co-ventures, according to Cody. At least 24 jurisdictions have requirements regarding these. While just four states require license for these, many require filing a contract with the appropriate authority in that state, Cody explained.
Recordkeeping is vital. Maintaining and upholding policies are all essential to maintaining a compliant organization, said Cody.
To get a free, full nonprofit compliance checklist, go here.