Start a compliance review with the activities your nonprofit actually carries out. The questions will depend on your tax status, location, funding, employees, and programs. Public charities and private foundations may face different rules. Identify the records you need and the questions that require legal advice.

Build a reliable picture of the organization

Collect governing documents, the tax-exemption determination, recent filings, board policies, significant contracts, and information about fundraising and programs. Identify the states where you operate, employ people, or solicit contributions. Record who handles each filing and renewal, where proof of submission is stored, and which obligations have no clear owner.

Ask program and development staff about activities that may not be obvious from the annual budget: advocacy, election-related work, international partnerships, restricted grants, fee-based services, and new collaborations. A checklist is useful only when it reflects the real organization. Present uncertain items as questions rather than assuming that a missing document proves a violation.

Prioritize the questions that need counsel

Create a short issue log with the relevant activity, supporting records, responsible person, and any deadline. Separate routine administrative gaps from questions requiring legal interpretation. Have counsel assess rules concerning exempt purpose, advocacy, fundraising, employment, and other relevant areas. Avoid adopting advice intended for a different type of nonprofit without checking whether it applies.

Find a structured starting point

The Nonprofit Legal Defense Network, founded by Alliance for Justice and We The Action, offers pathways to risk assessment and legal support. Review its current clinic and assistance options. Bring a clear description of your activities and the questions you want to resolve; a preliminary assessment is a starting point for further work, not a substitute for every specialist review.

The U.S. Center for Nonprofit Law compliance roadmap for public charities organizes key 501(c)(3) issues and links to additional resources. Use it to identify topics to discuss with counsel. Confirm how the guidance applies to your organization and check the current law before changing a program or signing a certification.

Make the review an ongoing practice

Assign an owner and completion date to each agreed action. Put recurring obligations on a shared calendar, with backup coverage when staff change. Give the board a useful summary of unresolved risks and decisions while following counsel’s guidance about confidential legal advice. Review the process when operations, funding terms, or relevant requirements change. This guide provides general orientation and does not replace legal advice.

Explore the Nonprofit & Foundation Resilience guide for related resources. For strategic or crisis communications support, contact Caitlin at CBKStrategies.

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