Charities and community organizations, no matter how important their good work, must diligently adhere to numerous formalities. Over the last few years, hundreds of thousands (yes, 100,000s!) of non-profits have lost their tax-exempt status for failing to satisfy their filing requirements. In recent years, New York State has made significant revisions to the law governing non-profits. Although the number of recent changes at both the state and federal level might suggest otherwise, the legal environment is actually more supportive of non-profits. For smaller organizations especially, the administrative overhead has been eased.. It’s not difficult to satisfy the new requirements – the trick is to make sure you know which requirements affect you.
At formation, new organizations must determine whether to structure as independent organizations pursuing their own tax exemptions and funding sources or to enter into fiscal sponsorship and collaborative relationships with established entities. Established organizations should be particularly careful to maintain their exempt status with diligent record-keeping, board governance, appropriate reporting, and exercising due care as they enter agreement with service providers and other organizations.
Zak has helped organizations operating within the United States and abroad navigate the myriad local, state, and federal requirements. Regardless of size, from the localized community organization just being formed to the national nonprofit with an extensive budget, Zak counsels your organization toward the best balance of goals and budget.