Aaron Young Planning
Keep Your Nonprofit In Good Standing
M ost nonprofits are started by idealistic individuals who see a need, and come together because they want to make a difference. During these early stages, the
for you to promote the mission and the cause of the organization. Not only is this a great way to self-promote the cause, it’s also a way to show that you are meeting the requirements as outlined by the rules and regulations The board of the nonprofit plays a critical role in overseeing the eligibility of the nonprofit, fundraising, and providing direction by leveraging their individual strengths as directors. Not only do you want to recruit people who believe in the mission of the nonprofit, you want people who understand how to read financials and have strong connections in fundraising and marketing. Board members should be individuals who don’t have any relationship to the nonprofit. This helps eliminate the perception that transactions are benefiting the individuals and not the organization as a whole. Most people or groups start nonprofits with the intention of making a difference. Unfortunately, good intentions are not enough to keep a nonprofit legal in the eyes of the law or required regulations. To obtain or maintain the benefit of nonprofit status requires a great deal of work and documentation.The good news is that there are many services available that can help you manage this side of the business, so don’t let the extra effort stop you from fulfilling your mission. Aaron Young has empowered business owners for over 20 years to build strong companies and proactively protect their dreams. Aaron has made it his life’s work to arm business owners with success formulas that immediately provide exponential growth and protection. As CEO of Laughlin Associates, Aaron advocates for entrepreneurs and is a pioneer in the incorporation industry. for maintaining your nonprofit status. How strong is your governing board?
energy is high and the mission is clear.The nonprofit, if approved by the IRS, must continue to document and meet certain IRS requirements if they wish to ask for tax-deductible donations. Here is a list of four often overlooked on-going requirements to maintain your IRS status. Is your nonprofit in line with your mission? This might seem like the basic foundation of all nonprofits but, in some cases, as the nonprofit grows and more people become involved, the mission becomes lost. From the board of directors, to the employees, to the volunteers, does everybody have a clear understanding of the goals of the nonprofit? The mission statement should guide the board, employees and volunteers as they represent the nonprofit. Are you dotting your I’s and crossing your T’s? All nonprofits have a heavy burden of documentation. Failure to follow the basics of what is required can result in the loss of nonprofit status and, in a lot of cases, significant tax penalties. Supporting documents that justify the actions of the company should be kept organized and in a safe place for review. Invoices, donations, grants, employee records, approved mission statements, state and federal filings, and receipts are just a few of the documents that must be maintained by the nonprofit. Are the deeds of the nonprofit transparent to the public? Your mission, financials, good deeds and activities should be clear and promoted to the public. If you don’t have a website, you should.This is a great place
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