Staying Compliant: The Nonprofit Leader’s Checklist

Hey nonprofit superstars, let’s talk about something that might not be the most glamorous part of our work, but is absolutely crucial—compliance. I know, I know—keeping up with regulations and filings probably isn’t why you got into this field, but trust me, staying on top of these tasks will save you from headaches down the road. Plus, it frees up your energy to focus on what you do best: making a difference!

So, here’s your roadmap to ensure your organization stays compliant and thrives:

1. Keep Your Financials Tight

• Review Your Numbers: Sit down with your bookkeeper or CPA and take a deep dive into your year-to-date financials. Make sure every penny is accounted for and classified correctly—whether it’s from individual donations, grants, or sponsorships.
• Check Your Grants: Ensure that any restricted funds are being used according to the donor’s wishes. Misclassifying these can lead to major headaches!

2. Master Your Filings

• IRS Form 990: Mark your calendar and don’t miss this one! Whether you’re filing a full 990 or a simpler 990-N, this is your chance to show the IRS—and your donors—that your nonprofit is in good standing.
• State Filings: Many states require an annual report or charitable solicitation renewal. Make sure yours is current. This is the kind of detail that can easily slip through the cracks if you’re not paying attention.

3. Board Oversight

• Update Your Sunbiz Profile: Or whatever your state equivalent is. New directors? Changes in your registered agent? Get those updates filed pronto.
• Conflict of Interest Policy: Every board member needs to sign off on this annually. It’s not just a formality—it’s a key part of keeping your operations transparent and ethical.

4. Document Everything (and Keep It!)

• Retention Plan: Know what to keep and for how long. This includes meeting minutes, financial reports, and key contracts. And yes, when the time is right, securely destroy what you no longer need—but make sure you’re following the rules.

5. Public Profiles Matter

• Guidestar & More: Keep your profiles on sites like Guidestar up to date. You never know when a major donor or foundation might be checking you out.

6. Get Ahead of Deadlines

• Compliance Calendar: Schedule everything. Work backward from deadlines for things like your 990 or grant reports, so you’re not scrambling at the last minute.

7. Regular Policy Reviews

• Keep Policies Fresh: Your whistleblower, conflict of interest, and document retention policies should be reviewed regularly. Make sure they’re still serving your organization well and update them if needed.

Wrapping It Up

I know that staying compliant can feel like just another task on a never-ending to-do list, but keeping these bases covered ensures that your nonprofit stays in the game. By handling these essentials with care, you’re not just avoiding trouble—you’re positioning your organization to grow, thrive, and continue making the impact you’re passionate about. So, take a deep breath, tackle this checklist, and set your nonprofit up for a fantastic year ahead! You’ve got this!