Running a nonprofit is no small feat. Between fundraising efforts, volunteers, accounting and meetings, it’s easy to let nonprofit compliance take a back seat.
However, neglecting your compliance responsibilities can lead to fines, penalties, the loss of your tax exempt status and damage to your reputation. If that’s not bad enough, if noncompliance is not remediated, your nonprofit board may face dissolution-signaling the end of your nonprofit altogether.
But fear not. We’re here to help you avoid mistakes that could lead to such consequences. Below are some common compliance tasks we see our customers let fall through the cracks.
1. Not Filing Form 990
The IRS requires tax-exempt nonprofits to file an annual Form 990 to maintain their status. Most MoneyMinder customers must file a 990-EZ or 990-N to stay compliant. Failure to file for three consecutive years results in revocation of your status.
2. Overlooking State Compliance
Many nonprofits focus on federal compliance but overlook state-specific obligations. Annual state filings vary greatly by state, and should be completed in accordance with each Secretary of State’s rules.
3. Failing to Update Bylaws
Your bylaws serve as a foundation that dictates how your group is governed. Keeping your bylaws updated is important to ensure the board isn’t making decisions around outdated rules, which can lead to conflicts and disputes. Most bylaws spell out how often they should be updated.
4. Forgetting About Other Licensing
Depending on your nonprofit, you may need additional licenses or permits. Some examples might be a charitable solicitation license, gaming permit or movie screening license. Failing to obtain or renew these can result in fines or canceled events.
5. Not Having a Centralized Area to Keep Track of Compliance
One of the most critical mistakes when it comes to nonprofit compliance is not keeping tabs on everything in one place. Instead, many groups rely on scattered notes, spreadsheets or institutional knowledge, which can result in missed deadlines and confusion about who is responsible for each task.
The New MoneyMinder Compliance Log Can Help
Having seen these mistakes from our customers time and time again, we’re excited to announce our new Compliance Log feature. This tool gives your stakeholders a clear record of your compliance requirements, with the flexibility to be customized to your unique needs:
- Track key upcoming due dates
- Log who filed what, and when, historically
- Attach records and files
- Add custom compliance items
- Keep track of key data points like Formation Date, EIN and Financial Year
Learn how to use the compliance log in this article from our User Help Center.
Start a free trial
Not a MoneyMinder user? Try out the compliance log and all of the features free for 30 days.
Connect your Venmo account to MoneyMinder PRO to directly download transactions, saving you time and effort. You just review the transactions to ensure they are properly categorized and fill out any required fields.
Connect your Stripe Account to MoneyMinder PRO to directly download transactions, saving you time and effort. You just review the transactions to ensure they are properly categorized and fill out any required fields.
Set up a MoneyMinder Store free. Just pay 0.4% /transaction*
Connect your Bank, Square and PayPal accounts to MoneyMinder PRO to directly download transactions, saving you time and effort. You just review the transactions to ensure they are properly categorized and fill out any required fields.
Connect your Bank, Paypal and Square accounts to MoneyMinder PRO to directly download transactions, saving you time and effort. You just review the transactions to ensure they are properly categorized and fill out any required fields.
Connect your Bank, Paypal and Square accounts to MoneyMinder PRO to directly download transactions, saving you time and effort. You just review the transactions to ensure they are properly categorized and fill out any required fields.
Join It is a membership management service that helps businesses and nonprofits effectively sell, track, and grow their membership.