Checklist for an Assessment of Legal Activities in U.S. Nonprofit Organizations

Sections of this topic

    Checklist for an Assessment of Legal Activities
    in U.S. Nonprofit Organizations

    Edited by Carter McNamara, MBA, PhD

    (Be sure to read How to Use this Tool and Disclaimers before using information in this document.)

    Also consider
    Related Library Topics

    Rating
    *    		 Indicator Met Needs
    Work    		 N/A

    E

    		 1. All relevant filings to the Secretary of State are current. These filings might include: Annual Registration, Articles of Incorporation with all amendments, Change of Corporate Name, Change of Corporate Address. (The particular state office that processes these filings depends on which state you live in.)

    E

    		 2. The organization is registered with and has filed its annual report with the Attorney General’s Office. (The particular state office that processes these filings depends on which state you live in.)

    E

    		 3. The organization has filed the IRS form 1023 (application for 501(c) status, if applicable) and has received a letter of determination. If the Form 1023 was either filed after 7/15/87 or was in the organization’s possession on this date, it is made available for public inspection. (This requirement applies to tax-exempt organizations.)

    E

    		 4. IRS form 990 and 990T (unrelated business income) if required, have been filed and copies of the 990 are available to the public. (This requirement applies to tax-exempt organizations.)

    E

    		 5. Federal and state payroll tax withholding payments are current. (This requirement applies organizations with employees.)

    E

    		 6. Quarterly and annual payroll report filings are current. (This requirement applies organizations with employees.)

    E

    		 7. The organization has filed with the Minnesota Department of Economic Security and complies with all filing requirements of the Minnesota Unemployment Fund. (This requirement varies among states. Readers are encouraged to contact their Attorney General’s or Secretary of State’s office for any filing requirements in their state.)

    E

    		 8. If the organization has qualified employee health and welfare and retirement benefit plans, they meet with all the federal laws, including: COBRA; initial IRS registration; plan documents; annuals filings of the 5500 C/R with copies available to employees. (This requirement applies organizations with employees.)

    E

    		 9. Organization acknowledges and discloses to their board and auditor any lawsuits or pending legislation which may have a significant impact on the organization’s finances and/or operating effectiveness.

    E

    		 10. When the Board of Directors makes decisions, a quorum is present and minutes are maintained.

    E

    		 11. If the organization is subject to sales tax, State and City filings and payments are current.

    E

    		 12. Organizations that participate in grassroots or direct lobbying have complied with all filings and government regulations.

    E

    		 13. Organizations that conduct charitable gambling have complied with government regulations.

    E

    		 14. Organizations with employees represented by a union must have copies of the union contracts on file.

    E

    		 15. Organizations that operate in a fiscal or host-organization relationship with another organization or social service group have a written agreement on file.
    Indicators ratings: E=essential; R=recommended; A=additional to strengthen organizational activities

    This information may be copied. Please cite credit to the Greater Twin Cities United Way.

    For the Category of Organizational Development:

    To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

    Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.