The biggest change is an increase in salary requirements for exempt workers — those who are exempt from the rules regarding overtime pay.

The U.S. Department of Labor published a new final rule in 2024 with guidance on employee and independent contractor classifications under the Fair Labor Standards Act (FLSA).

Both the attorney and the nonprofit need to be aware of these ethical considerations and take steps to ensure clarity for all involved.

While these grant funds can often represent a large sum of money for the nonprofit to use, the funds also require complying with grant guidelines at both the state and federal level.

Understanding and honoring donor intent requires thinking ahead to the future of the organization, putting a written donor agreement in place for larger donations, and ensuring the right processes are in place to honor a donor’s intent.

The Corporate Transparency Act (CTA) took effect on January 1, 2024, imposing a beneficial ownership information reporting requirement on all designated reporting companies

For nonprofits, there are a few important annual tasks that need attention.

These can all be great uses of photos, but anytime an organization photographs attendees and donors at events, you need to be mindful of privacy issues that can arise.

In either situation, a naming rights agreement helps clearly outline the expectations and terms that go along with that person’s name being prominently displayed.

In any of these situations, it’s important to stay on top of IRS filings for nonprofit organizations.

Ownership of intellectual property can get murky quickly, and it’s important for organizations to understand their risk and put the right policies, procedures, and agreements in place to reduce that risk

One of the root causes of the struggles and failures is unrealistic expectations when it comes to timelines and funding. Over time, founders who began with the best of intentions may realize that the nonprofit is not sustainable in the way they thought.

Churches hold tax-exempt status, but the regulations that apply to churches and religious organizations differ from other public charities.

Liability waivers and agreements exist to protect the organization. They cover areas like risk awareness, agreeing to follow policies and safety rules, release of claims, medical care consent, indemnification, confidentiality, and publicity/photo release.

When a nonprofit discovers that misuse of funds has occurred, it’s critical to report the misuse to all appropriate agencies.

One often overlooked area that can cause significant problems for an organization is nonprofit board succession planning.

While it is hard to think about, nonprofit organizations need to be prepared by engaging in succession planning for their key staff positions.

Conducting a thorough nonprofit risk assessment can help each organization understand the potential risks and put plans in place to reduce that risk.

Board training is crucial to the health of a nonprofit organization. As the leaders of the organization, a well-informed board of directors sets the foundation for all aspects of the organization.

Nonprofits may need to file paperwork for tax exemptions at three different levels: federal, state, and county.