Mistakes To Avoid When Keeping Your Nonprofit In Compliance

To maintain the non-profit license for your organization, you will need to make sure that your non-profit organization is in compliance. The best way to do this is to speak with a nonprofit compliance service. However, there are several things you will need to keep in mind while working to remain in compliance.

The Main Characteristics of a Non-Profit

Because the goal of a non-profit is to achieve goals that are not profit-motivated, a non-profit organization must not have shareholders. In some cases, non-profit organizations become successful enough that some individuals want to invest, but they are not allowed to do so while allowing you to maintain a non-profit status.

The non-profit organization must not make substantial profits from activities that are considered to not be related to the core mission of the non-profit. For example, if you were to host an event and were to charge money for the event, this should not generate substantial profit if the event is not directly related to your core mission.

Moving Beyond the Scope of Your Non-Profit

You need to remain within the scope of your non-profit. For example, you will not want to spend income on any activities that are not directly related to the goals of your organization. If you engage in activities that cannot be justified, such as hosting several lavish parties, you may place your non-profit status in jeopardy. 

For example, your business cannot be focused on giving free books to children and then spend a significant amount of time lobbying for a politician. You cannot contribute to political campaigns at all, and you cannot lobby in a substantial way for legislation to be changed even if you believe that the new legislation is related to your nonprofit..

When to Talk To Nonprofit Compliance Solutions

Whenever you will be making a major decision with your nonprofit organization, you should speak with nonprofit compliance solutions. They can provide services throughout the entire life of your nonprofit. For example, a specialist will assist you in finishing your paperwork, which will save you time and allow you to make sure that your paperwork is accurate.

Keeping good records is an important part of making sure that you convince regulatory agencies that you are in compliance. Many nonprofit compliance solutions use their own software to more efficiently track everything you will need to do to ensure that you meet all of your obligations.