These legalities pertain not only to personal behavior, but to mandates for a range of requirements, such as:
- filing articles of incorporation – and sometimes bylaws – usually with the respective secretary of state;
- filing Tax Form 990 (1) with the IRS for federal tax-exempt status; and filing with the state for state tax-exempt status;
- filing employees’ social security and income tax withholding with the IRS;
- filing of annual reports;
- applying with the state for accreditation and/or licensure;
- being aware of the Fair Labor Standards Act (2) and other employment regulations; and
- following statutes regulating solicitation, fundraising and political lobbying by non-profit organizations.
The vast majority of the above requirements will likely be taken care of by agency staff and consultants. Still, the board is ultimately responsible, and the importance of boards consulting legal counsel concerning the intricate state, federal and local requirements governing non-profit corporations cannot be overstated.
(1) IRS Form 990: www.irs.gov/pub/irs-pdf/f990.pdf
(2) U.S. Dept. of Labor: Fair Labor Standards Act: Compliance With: www.dol.gov/esa/whd/flsa/
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