Every nonprofit journey is unique. Whether you’re an emerging nonprofit or an established organization looking for extra support, BryteBridge has the resources to help you get from where you are to where you want to be.
In most states, applying for federal tax-exempt status and maintaining 990 tax filings is insufficient to meet state nonprofit compliance requirements. Charitable organizations must meet the state’s specific requirements in which they are registered to solicit donations and apply for grant funding. Failure to maintain an organization’s 501(c)(3) compliance may result in penalties and fines and can hurt your nonprofit’s reputation.
State Charity Registration
Most states require approval before a nonprofit asks for donations from the public. Charity registration is the process in which your nonprofit must register with state authorities, such as the Attorney General’s office, before soliciting donations. It’s important for the states to monitor Nonprofits’ activities and ensure they meet the state law requirements. This requirement varies depending on your organization’s size, activities, and the states where you operate. It’s a legal step acknowledging your intent to function as a charitable entity and is crucial for your operations.
This process is not just a legal formality; it’s a foundational step in establishing and maintaining your organization’s compliance requirements as a 501(c)(3) Nonprofit.
Running a nonprofit at the start-up stage often means staff members wear “many hats.” With so many different roles and responsibilities, it’s easy to lose track of crucial 501(c)(3) compliance deadlines. Our nonprofit compliance checklist features four critical dates to add to your calendar, all are critical componets to filing annual Charity Registrations.
- Fiscal year-end Date: Your organization’s fiscal year-end date. This may be December 31, but it can vary based on your organization.
- Annual Budget Approval Deadline: Dates for creating your budget and securing board approval. Your operating budget and accounts payable and receivable data will be needed to complete your tax forms. In many organizations, your board will also need to approve them.
- Donation Receipt: Dates for sending year-end tax receipts. Donation receipts must be sent to donors every January.
- Form 990 Tax Deadline: Form 990 and 990-N are due dates. Depending on your organization’s income, you may need to complete Form 990 or Form 990-N.
Annual Reports
In the context of state compliance, an annual report is a legal document that nonprofit organizations must submit to their respective state governments. This report typically includes basic information about the organization. Including, but not limited to, its current address, names of directors, and a summary of activities. This is distinct from financial statements and impact reports often shared with donors and the public.
The primary purpose of this kind of annual report is to keep the state updated on the nonprofit’s current status and to ensure it is operating in line with legal requirements. Filing this report is essential for maintaining good standing with the state, a status that can impact a nonprofit’s ability to receive grants and donor contributions. Compliance with these reporting requirements also safeguards the organization from potential legal issues, including administrative dissolution.
Each state has its specific requirements for what must be included in an annual report. Common elements often include the organization’s legal name, principal address, names of directors and officers, and a statement of purpose. Nonprofits must ensure this information is accurate and current to avoid compliance issues.
Best Practices in Creating and Filing an Annual Report
Timeliness is crucial in filing annual reports. Nonprofits should be aware of their state’s filing deadlines and fees. Keeping track of organizational changes throughout the year can simplify the process. Reviewing state guidelines annually is beneficial, as requirements can change.
Consider a nonprofit that failed to file its annual report and faced administrative dissolution, losing its tax-exempt status, and facing penalties. Contrast this with an organization that diligently filed its report, maintaining good standing and continuing its operations without interruption.
Summary
Annual reports for state compliance are a fundamental aspect of nonprofit management. These reports are not about storytelling or financial disclosures to the public but are a legal requirement for maintaining the organization’s good standing with the state. Missing this critical task can lead to serious consequences, including losing the nonprofit’s legal status.
Worry Free Compliance, Starting at $89.00 per month.
Our State Compliance Subscriptions take the worry out of meeting your legal requirements to remain in good standing with the states you work in or solicit donations. Focus on your mission while BryteBridge always meets your filing requirements and deadlines.
The State Compliance Subscription includes annual preparation and filing for one (1) state Annual Report, one (1) state Charity Registration renewal and ongoing state compliance monitoring. State filing fees up to $100 are included; anything over $100 will be billed separately at the time of filing.
In addition to helping meet your state compliance requirements, BryteBridge can help your organization complete the federal tax forms needed to maintain 501(c)(3) compliance. Our primary goal is to make this process smooth and effortless for you and your organization. We will work with you to ensure you have efficient:
- Nonprofit Compliance Review & Recommendations
- State Charity Registration
- Annual Report
Important Information
- Please note, some states have more requirements than others.
Don't Risk Your 501(c)(3) Status!
Working with BryteBridge Nonprofit Solutions on your nonprofit compliance checklist and nonprofit compliance requirements helps you stay focused on what truly matters. We help ensure your nonprofit maintains its positive tax standing. If you need more information or would like to schedule a consultation, contact us to get started today.
State Compliance Features
State Compliance Overview
Our state compliance service are designed to ensure your nonprofit is current with annual state requirements, in your home or designated state allowing your organization to legally operate and solicit donations in accordance with state guidelines.
Charity Registration
Most states require a charity registration or solicitation to solicit and accept donations. Required to legally ask the public for donations
Business Portal
Online access to monitor compliance status, summarizing our findings, view work that was completed, and see important due dates.
Annual Report
Complete annual reports required by the state to acknowledge nonprofit is active and to alert state of any changes.
Filings
If electronic filings are available, we will submit all filings on your behalf electronically to the state. State fees are included , up to $100. The compliance services are per state, and don’t include multiple states.
