Starting and running a public charity takes passion and dedication. You devote your time to helping the community, advancing education, supporting social welfare, or funding important research. However, along with your mission comes a complicated web of legal requirements that can easily feel overwhelming.

At MK Law & Consulting, our team helps lift the legal burden off your shoulders. We have many years of experience helping tax-exempt organizations to ensure that they comply with all relevant state and federal laws.

Complying with State and Federal Laws

Asking the public for financial support for a charitable mission means that you must comply with a litany of state and federal laws and regulations. After your organization receives tax-exempt status, generally, both the state and federal government expect high levels of transparency to protect donors from fraud or misrepresentation. This often involves registering your charity in the states in which you are fundraising and making your records available for public inspection.

State registrations and compliance are rarely a one-time task. Many states require annual renewals. Your total revenue typically determines the scope and frequency of your financial reporting for the year. Public charities that bring in substantial amounts of money must submit audited financial statements prepared by certified independent professionals. Failing to meet the requirements of state regulators can put the organization at significant risk, including, at the extreme, the loss of tax-exempt status.

Essential Areas of Legal Focus for Your Organization

Running a smooth operation goes beyond just filing the right paperwork. You need a proactive approach to handle the various legal matters that arise throughout the year.

  • Board Governance. Creating clear policies provides guidance to your directors for their decision-making and prevent conflicts of interest.
  • Tax Compliance. Protecting your federal tax exemption means complying with numerous, complex rules and regulations.
  • Contract Management. Reviewing agreements with vendors, strategic partners, or event venues protects your organization from unexpected liabilities and financial risks.
  • Gift Acceptance. Developing gift acceptance policies and procedures; creating template gift instrument forms; preparing or reviewing gift instruments for significant donations streamlines your operations.
  • Internal Investigations. Addressing complaints or compliance concerns promptly ensures your charity maintains its integrity and public trust.

If you are ready to strengthen the legal foundation of your nonprofit, reach out to MK Law today to schedule a consultation and get started.