Legal Compliance & Transparency

The OMB Uniform Guidance establishes important rights for nonprofits: "Governments at all levels – local, state, and federal – that hire nonprofits to deliver services are now required to reimburse nonprofits for the reasonable indirect costs (sometimes called “overhead” or “administrative” costs) they incur on behalf of governments when federal dollars are part of the funding stream. The new mandate is embedded in grantmaking rules that the federal Office of Management and Budget (OMB) put into effect at the end of 2014.

Under current law, charitable nonprofits in North Carolina pay sales and use tax on their purchases and can apply for semi-annual refunds of the taxes they pay. A system of sales tax exemption would save nonprofits time and reduce administrative burdens. Bipartisan bills in both the House (H.B. 882) and Senate (S.397) would replace the nonprofit sales tax refund system with sales tax exemption for most 501(c)(3) nonprofits.

The Urban Institute's 2010 report on government contracting with nonprofits uncovered long-standing problems experienced by private nonprofits in North Carolina that provide public services through contracts with federal, state, and local governments.

This guide offers clarification on how the FLSA generally, and the white collar exemptions specifically, apply to the nonprofit sector. (U.S. Department of Labor)

See also: Breaking down your nonprofit's obligation to pay overtime by National Council of Nonprofits

Charitable organizations have long used raffles as an effective way to raise support.  Conducting a raffle seems simple enough, at least on the surface, right?  But before undertaking a raffle, you’d be well advised to familiarize yourself with the requirements outlined in this update. (The Deborah and Dennis Walsh Foundation)

Looking to develop a risk management program? Risk Management for Nonprofit Organizations outlines five key steps in the risk management process. (Nonprofit Risk Management Center)

An organizational fraud policy facilitates the development of controls to help detect and prevent fraud against your organization. It promotes consistent organizational behavior by providing guidelines and assigning responsibility for the development of controls and the conduct of investigations. Customize this sample fraud policy to adopt these practices at your organization.

This guide seeks to explore the expanding world of volunteer screening, identify relevant laws as well as fundamental privacy protections, and offer suggestions for organizations and volunteers. References and additional resources are included at the end of this guide. (Privacy Rights Clearinghouse, 2019)

Volunteer Background Checks: Giving Back Without Giving Up on Privacy

Fundraising activities are regulated by state law. Many states require charitable nonprofits as well as any paid professional "fundraising counsel" or consultant hired to assist the nonprofit with fundraising activities, to register with the state before the nonprofit or professionals solicits any donations. Additionally, many states require nonprofits that enter into agreement to share the revenue from sales activity with another organization to file with the state to disclose that fundraising activity. All in all - it's complicated!