What are the requirements to keep our Nonprofit Organization open and in compliance with state and federal laws?

Ongoing requirements often depend on the state your Organization is operating and the local municipalities. Regardless, there are a few essential items you will need to handle to keep your nonprofit Organization active and in good standing. Here are some of the most common.

Annual Report:

Most states have a report due every year or every other year to maintain your company standing. Some also use these reports to update key pieces of information with them (including management and addresses). Each state varies in terms of the due date and fee involved. As part of our partnership, we send notifications to remind you of any upcoming annual reports. We can also assist with the filings to ensure your company stays active and in good standing.

Charity Registration:

Most states (40) require nonprofit organizations to register before soliciting donations from residents of that state. This restriction applies to soliciting donations across state lines through the internet, phone, social media, mobile applications, etc. For example, suppose your Nonprofit is in California but solicits donors online in Nevada. In that case, the Organization will need to follow both states’ charitable solicitation registration requirements.An organization’s failure to register in any states it operates or solicits may result in a state investigation, fines, questions from the Internal Revenue Service, and reputational damage from current and potential future donors. Learn more!

Taxes:

While nonprofits with 501(c)(3) tax exemption status might not pay federal taxes, they still have to file their Nonprofit’s IRS Tax Form 990 or Form 990-N. Filing this form ensures that nonprofits conduct their charity business in a way that complies with the 501(c)(3) requirements necessary to maintain tax-exempt status by providing the IRS with an overview of your activities throughout the last fiscal year.

Registered Agent:

Most states require that you maintain a registered agent of record. The registered Agent or an “agent for service of process.” can range from a person to a corporation, either of which is designated to do the same thing: receive official company and legal documents, such as state compliance documents, lawsuit papers, subpoenas, and other authorized legal or business paperwork. The Registered Agent is in place to ensure businesses can be easily reached for official purposes by the state or for lawful purposes, such as subpoenas or an official summons. This role is more important than ever, with many businesses running remotely or out of residential addresses. Think of it this way: a Registered Agent is a backup plan to guarantee your important legal documents make it into your hands.