Even small organizations can get in trouble if they don’t know the basics of nonprofit law and, an attorney even on a volunteer basis, should be available to consult as you first start up and thereafter. The lawyers clearinghouse is the place to look, or see the end of this section for legal resources.
Starting a nonprofit
Are you interested in starting your own nonprofit organization? Here are some helpful links.
- Massachusetts Guidelines
- Establishing a Nonprofit Organization – Foundation Center
- The Foundation Center’s Webinar Series for Nonprofit Startup Organizations
- Getting Started – Third Sector New England
- How to Start a Nonprofit – National Council of Nonprofits
- Starting a Nonprofit Organization- Free Management Library
- Starting a Nonprofit – About.com
- Nonprofit Incorporation Workshops – Lawyers Clearinghouse
- How to Start a Nonprofit in Massachusetts
- MA Fundraising Registration
- Starting a Charity? Here’s What to Do, and What Not to Do
Taxes for nonprofits
Here is some information from the IRS that every nonprofit needs to know about annual filings, tax exemption, etc. We encourage you to make sure you are up-to-date on all tax policies. Please note recent changes to the regulations for form 990 and the new 1099 legislation.
- Tax Information for Charities & Other Non-Profits – IRS
- Form 990 Online- National Center for Charitable Statistics at the Urban Institute – An online tax filing system for nonprofits. Free for nonprofits with a budget of $100,000 or less, sliding scale fee system for nonprofits with larger budgets.
501(c) 3 Status
Most nonprofit organizations are classified as 501 (c) 3. Here is more information about what that means, as well as how to apply for tax exempt status.
- Nonprofit – IRS Classifications – About.com
- Applying for 501 (c) 3 Tax- Exempt Status – IRS
- Nonprofit Incorporation Workshops – Lawyers Clearinghouse
- How to Start a 501(c)3
Fiscal sponsorship
Before becoming incorporated, many organizations seek a fiscal sponsor to ease some of the administrative burdens. Having a fiscal sponsor can also help an organization apply for grant funding prior to incorporation. Most foundations will not give money to an organization unless it is incorporated or has a fiscal sponsor.
- Fiscal Sponsorship Resources – Third Sector New England
- Frequently asked questions about Fiscal Sponsorship – Foundation Center
- Find a fiscal sponsor
- The What, Why, and How of Fiscal Sponsorship – Jonathan Spack, Third Sector New England
Assistance with creating or revising bylaws and articles of incorporation
Non profits are required to adopt articles of incorporation and bylaws, here is some help with both.
- What are Nonprofit Bylaws? – Foundation Center
- Do Changes in Our Nonprofit Bylaws Have to Be Reported to the IRS? –About.com
- The Community Legal Referral Program – Lawyers Clearinghouse
- Nonprofit Articles of Incorporation
- Nonprofit Bylaws
Disclosures
Nonprofit organizations need to provide a written disclosure to donors who contribute $75 or more in goods or services. It’s best to inform them of this in their acknowledgment letter.
Charitable Contributions Substantiation and Disclosure Requirements – IRS
Mergers, collaborations, and partnerships
Have you thought about collaborating with another organization on a project? Before doing so, it’s important to have a plan in place and be prepared for any challenges that might arise. Also, in this vulnerable economy, some organizations might be thinking about merging with another organization. Make sure your plans are well thought out before you take any action.
Code of ethics
Thinking about establishing a code of ethics? A good idea. The links below will give you some guidelines.
- Ethics and Accountability in the Nonprofit Sector – National Council of Nonprofits
- How Ethical Is Your Nonprofit Organization? – Guidestar
- Five Ways to Maintain Your Nonprofit’s Ethics and Preserve Your Brand –About.com
Confidentiality
Many nonprofit organizations work with at-risk clients and in situations where information needs to be kept confidential and some employee and client information is required to be kept confidential. Here is a sample confidentiality form.
Accountability/transparency
You have probably heard a lot about accountability and transparency. Do you know what kinds of information you need to make public?
- FAQs About the Exempt Organization Public Disclosure Requirements – IRS
- Cultivating a Culture of Accountability and Transparency – National Council of Nonprofits
- Paper-Thin Transparency – Guidestar
- Legal Assessment Program – Lawyers Clearinghouse
Membership nonprofits
Here is information on what it means to be a membership nonprofit.
Risk management/workplace safety
It’s important for your organization to ensure a safe workplace. Here are some management practices you should engage in.
- Risk and Risk Management – Nonprofit Risk Management Center
- Risk Management and Insurance – National Council of Nonprofits
- Risk Management – Free Management Library
- Top 5 Tips for Effective Nonprofit Crisis Planning – About.com
Insurance
Have you been wondering what types of insurance your organization should have? MNN offers some insurance discounts, see Cost Savings page for more information. Here’s what you need to know.
- Insurance – Nonprofit Risk Management Center
- Risk Management and Insurance – National Council of Nonprofits
Pro bono and reduced fee legal assistance for nonprofits
These links provide useful information about where you can find free and reduced-fee legal assistance.
- Pro Bono and Reduced-Fee Nonprofit Legal Services – Third Sector New England
- Where can I find “Pro-Bono” Legal Assistance for My Nonprofit organization? – Foundation Center
- Lawyers Clearinghouse
The Community Development Clinic at the Southern New England School of Law in Dartmouth offers free legal representation by upper level students and educational materials to nonprofit organizations in the South Coast community.
Clinic projects include revision of bylaws, filing of incorporation documents, compliance with fund-raising regulations, and other such tasks. Students also are available to brief boards of directors or groups of nonprofits on various legal issues and developments impacting the sector.
Organizations interested in working with students in the Community Development Clinic must complete an inquiry form. For more information, call the Community Development Clinic at 508-998-9600 x 163, or email cdc@snesl.edu.
The MassLegalServices Legal Resource Finder will provide contact information for legal aid programs, other nonprofits, government agencies and court-based programs which offer free and low-cost services. Additionally, MassLegalHelp provides low-income, Massachusetts residents who face legal issues with information, resources, and legal aid.
Copyrights/fair use
Does your organization understand fair use of copyrighted material?
Background checks
The nature of your organization will determine the extent of the background checks of your staff and volunteers. Organizations that work with children will need to do more thorough background checks, such as CORI’s and SORI’s.
- What Can Be Included In a Background Check? – A Matter of Fact
- Ten Things Massachusetts Non-Profit Employers Should Know About the New CORI Regulations– David Henderson and Sarah Kohrs, Nutter McClennen & Fish LLP– New Criminal Offender Record Information (CORI) regulations took effect on May 4, 2012. This document provides the information you need in order to make sure your nonprofit is in compliance.