After successfully forming a nonprofit corporation and securing recognition of tax exemption, organizations are required to periodically report to various federal, state, and local regulatory agencies to maintain their compliance status.

Tovella Dowling assists nonprofit, for-profit, and social enterprising clients in monitoring their annual compliance filings so that their time, energy, and effort can remain focused on advancing their mission.

Federal Taxing Agency – Internal Revenue Service

Nonprofits are required to file a federal information tax return on the 15th day of the 5th month following the close of their tax period. The proper form to be filed with the Internal Revenue Service is dependent upon the amount of gross receipts that the nonprofit received during that reporting tax period.

All nonprofits may opt for an automatic six-month extension of the filing deadline from the original filing due date through the filing of IRS Form 8868.

State Taxing Agency

In addition to filing a federal informational tax return, nonprofits also need to file a state informational tax return. Like the federal return, the proper form to be filed with the state taxing agency is dependent upon the amount of gross receipts that the nonprofit received during that reporting tax period.

Charitable Solicitation Regulating Agency

Fundraising activities conducted by nonprofit corporations, including solicitation of charitable contributions, retention of a fundraising professional, and operation of fundraising events and campaigns, are regulated on a state level and require an annual filing with the state regulator tasked with oversight of fundraising activities and charitable solicitation efforts.

Generally, this regulator is the Office of the State Attorney General or Secretary of State.

Annual Statement of Information Regulating Agency

Nonprofits are required to report basic information concerning their contact information and executive officers on a bi-annual basis with the Secretary of State through the filing of an annual statement.

This filing may be more frequent if your nonprofit experiences a change to information previously reported.

Audit Requirement

Depending upon the type of fundraising activities engaged in by a nonprofit, it may be required to obtain and file an independent audit report or audited financials with a state governmental agency to remain in good standing with its charitable registration within the state.

With fundraising activities being governed by state law, such requirements vary on a state-by-state basis.

As a result, a nonprofit must operate strategically and intentionally to ensure that its operations in a particular jurisdiction or acceptance of a particular grant justify the potential compliance obligations, such as an independent audit, that may come along with those activities.

Importantly, independent audits can be costly and very time-consuming. Our attorneys work with their nonprofit clients to ensure preparedness before conducting an audit and can work closely with the nonprofit’s chosen auditor to ensure the best possible results.

Annual Regulatory Compliance Flat Fee Services – “ARC Package”

Tovella Dowling assists its nonprofit, for-profit, and social enterprise clients in completing their Annual Regulatory Compliance obligations through its “ARC Package”, offered on a flat fee basis.

Under our ARC Package, our attorneys prepare and file all required federal, state, and local annual filings. In addition, the ARC Package ensures compliance of its clients from a governance perspective, ensuring that corporate formalities were filed throughout the year in compliance with state laws and regulations.

Following the preparation and filing of the required annual regulatory compliance filings with the respective agencies, our work together is not done. Our team provides useful templates, resources, and updates related to changes in law and best practices throughout the year to ensure compliance year-round.