A charitable organization must comply with all applicable federal laws and regulations, as well as applicable laws and regulations of the states and the local jurisdictions in which it is based and operates. If the organization conducts programs outside of the United States, it must also abide by applicable international laws, regulations and conventions that are legally binding on the United States.
The board must be familiar with the hierarchy of laws and the legal framework within which the organizations functions. Making certain that the governing body of your organization is aware of new and updated laws is crucial. Laws are often advanced or added annually; therefore those individuals need to be aware of all legalities pertaining to the organization.
LEGAL AND COMPLIANCE ISSUES
-Non-profits are covered under federal, state, and local laws and jurisdictions.
-An organization’s bylaws comprise a legal document describing the board’s structure and practices.
-IRS Form 990 inquires about existing policies and procedures relating to federal and state laws.
RESOURCES
• Access to nonprofit corporation state laws www.law.cornell.edu/states/listing.html
• “Life Cycle of an Exempt Organization” www.irs.gov/charities/article/0,,id=169727,00.html
• State and local bar associations www.hg.org/northam-bar.html
• National Association of State Charity Officials www.nasconet.org