National Nonprofit Day: Honoring Social Contributions

National Nonprofit Day, observed on August 17th, is an opportunity to honor the social contributions of nonprofit organizations. It also serves as a reminder for nonprofit leaders to review their practices and ensure that their organizations operate compliantly. Whether you are planning to start a nonprofit or are already managing one, understanding the complexities involved is crucial.

Starting a Nonprofit

1. Choose a Name: The name must comply with state laws.

2. Choose a Director: In many states, including North Carolina, your nonprofit must have at least one director.

3. Appoint a Registered Agent: This individual or company will accept legal papers on behalf of your nonprofit.

4. File Articles of Organization: This establishes your nonprofit as a legal entity.

5. Execute Bylaws: These govern the internal management of your nonprofit.

6. Obtain an Employer Identification Number (EIN): This is necessary for banking and tax purposes.

7. Apply for Tax-Exempt Status: This involves filing IRS Form 1023 and registering with state agencies like the North Carolina Secretary of State.

Operating a Nonprofit

1. Adhere to Key Duties: Educate board members to ensure that they uphold their fiduciary duties.

2. Establish Comprehensive Policies: Address integral operational aspects to ensure consistency and compliance.

3. Systemize Financial Oversight: Implement strong internal controls to prevent fraud and mismanagement.

4. Utilize Committees: Distribute workload and involve non-board volunteers to enhance

   efficiency.

5. Understand Permissible Activities: Ensure compliance to avoid jeopardizing tax-exempt status.

Support from Munson Law Firm

Starting and operating a nonprofit can be overwhelming. Munson Law Firm offers tailored legal services to support nonprofits, from formation to succession planning. By following best practices and seeking professional legal assistance, you can lead your organization toward a successful future. This National Nonprofit Day is an opportunity to both reflect on the impact of your nonprofit and ensure it is on track for long-term success.