CHAPTER 8
Staying in Good Standing
Getting your 501(c)(3) status is just the beginning. To maintain it and stay compliant, you must fulfill ongoing requirements at both the state and federal levels.
Annual State Reports
Most states require an annual or biennial report to keep your entity "active." These typically include basic organizational info and sometimes financial data.
Deadline: Varies by state
IRS Form 990
Even small nonprofits must file an annual information return with the IRS. The form you file depends on your revenue (990-N, 990-EZ, or full 990).
Deadline: 5th month after fiscal year end
Board Minutes
Keep detailed records of all major board decisions, votes, and meetings. This maintains your corporate "veil" and proves proper governance.
Best Practice: Document everything
Financial Records
Accurate bookkeeping is essential for transparency, tax filing, and audit protection. Use accounting software and consider hiring a bookkeeper.
Retention: Keep records for 7 years
Additional Compliance Checklist
- ✓Conflict of Interest Policy: Document and disclose any conflicts
- ✓Document Retention Policy: Have a written policy for how long to keep records
- ✓Public Disclosure: Make your Form 990 available to the public upon request
- ✓Charitable Solicitation Renewals: Don't forget to renew in all states where you're registered
- ✓Bylaws Compliance: Actually follow your own bylaws (meetings, votes, etc.)
⚠️ Warning
Failure to file Form 990 for three consecutive years will result in automatic revocation of your 501(c)(3) status. Set calendar reminders!