Starting an Online Business All-in-One For Dummies®, 3rd Edition

Chapter 5: Legal Considerations for Nonprofit Organizations

In This Chapter

• Selecting a gatekeeper for online compliance
• Writing and posting important policies
• Handling must-do registrations and guidelines
• Signing up with a governing organization

Nearly 300,000 nonprofits have lost their exempt status because they failed to file a report with the IRS for three consecutive years. This small omission brings big consequences. As the owner of a registered nonprofit organization, you're accustomed to the issue of compliance. Filling out annual reports for the IRS, issuing tax-deductible receipts to donors, and distributing legal waivers to volunteers are all a small part of your legal duties.

Fundraising over the Internet is no different. When you go online to seek donations, certain responsibilities come along with it, and overlooking even a few of those responsibilities can have a significant downside for your organization. Some of the issues we discuss in this chapter are internal compliance activities. Even if an action item isn't mandated by a government entity, it's still something you should do. Other issues mentioned in this chapter are legal requirements. If you're venturing into e-philanthropy for the first time, this chapter is required reading. Even if you know that you're up to speed with the latest online regulations, consider this chapter a review.