Non Profit Compliance

Non profit compliance addresses the need for a non profit to practice sound financial management and comply with an array of legal and regulatory requirements. A non profit needs to maintain accurate financial records that show the organization's financial resources are used in furtherance of the organization's charitable purposes. To assure non profit compliance, the organization should conduct periodic reviews to address regulatory and liability concerns.

Non profit compliance: Financial and legal requirements

Financially, a non profit must operate in accordance with an annual budget that has been approved by the board of directors, and maintain reports that accurately reflect the financial activity of the organization.

Legally, non profit compliance relies on being aware and staying within the guidelines of all applicable federal, state, and local laws and regulations. This accountability may include, but is not limited to, complying with laws and regulations related to fund raising, licensing, financial accountability, human resources, lobbying and political advocacy, and taxation.

To ensure a non profit maintains compliance with all legal, regulatory and financial requirements, a periodic internal review is recommended which should then be provided to the board of directors.