Pfau Englund Nonprofit Law, P.C. -- Annual Nonprofit Legal Checklist

Annual Nonprofit Legal Checklist

State & Local Legal Requirements

	Apply for state tax-exemption (if available in your state and your organization is recognized as tax-exempt by IRS)
	Apply for local business license (if required by your locality)
	Prepare and file local personal property tax return on business assets (if required by your locality)
	Check zoning requirements of your locality with respect to office location

Operational Requirements -- Annual

	Develop an annual budget with fundraising goals
	Hold annual meeting of governing board; elect officers
	Provide for annual evaluation of staff and staffing needs
	File annual report with state (if incorporated and required by state)
	File IRS 990 information return (if tax-exempt by IRS) and state tax returns (if required)
	Have an annual audit by a CPA (as appropriate based on budget)

Operational Requirements - Monthly

	Pay payroll taxes if applicable
	Pay bills

Operational Requirements - Ongoing

	Maintain minutes of all board, committee and other meetings
	Review program goals
	Review bylaws/other operational guidelines
	Review program development including fundraising and special event activities
	Revise budget to reflect current realities

Common Legal Issues

	Harassment, including sexual - train all volunteers, presenters and staff to avoid sexual harassment; develop policy regarding investigating and responding to reports of harassment
	Discrimination - treat all qualified applicants, volunteers and employees as similarly as possible; make appropriate accommodations whenever possible; develop policy for investigating claims of discrimination
	Independent contractors - make and review contracts with all contractors; independent contractors should not be supervised and controlled similar to employees
	Lobbying - tax-exempt 501(c)(3) organizations may engage only in a limited amount of lobbying (i.e. activities intended to influence local, state or federal legislators to introduce or vote for or against a specific piece of legislation)
	Risk Management Program - annually review the activities of your organization most likely to lead to legal claims and determine which of these activities you can eliminate, which you can make less risky, and which you can cover with insurance or transfer the risk via contract to other parties

The purpose of this site is to give you legal information. However, no attorney-client relationship is created by your use of this site or any of its features. Because legal advice must be tailored to the specific circumstances of each case and laws are constantly changing, you should seek the assistance of competent legal counsel for specific legal advice.

Pfau Englund Nonprofit Law, P.C. provides high quality, affordable, legal services for a wide variety of nonprofit organizations. Please contact us if you would like to engage our firm to assist you with the legal needs of your nonprofit organization. Admitted in the District of Columbia and Virginia. Practice otherwise limited to matters and proceedings before federal agencies, such as the IRS.

Copyright © 2007 Sandra Pfau Englund. All rights reserved. Use of this site subject to Disclaimer.

Pfau Englund Nonprofit Law, P.C.
3213 Duke Street, #622, Alexandria, VA 22314
Voice: 703-304-1204 Email: spfau@nonprofitlaw.com