An audit committee is considered a best practice for nonprofits. It helps the governing board perform its fiduciary and financial oversight roles, reduce risk, and maintain donor confidence.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the North Carolina Center for Nonprofits, www.ncnonprofits.org.
Additional resource:
The Internal Revenue Service released formal guidance related to nonprofit political activities in "Revenue Ruling 2007-41,' which describes 21 real-life scenarios. It is particularly useful for when nonprofits consider election-related programs and activities, since failure to comply may put at risk a nonprofit organization's tax-exempt status. (IRS)
Answers from the Secretary of State on Charitable Solicitation Licenses
If your nonprofit's budget is over $25,000, you generally have to register with the Charitable Solicitation Licensing Division of the NC Secretary of State. All nonprofits should contact the Secretary of State to determine if you need to register for a Charitable Solicitation License or to apply for exemption from the license.
Basic licensing information:
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. It is a nine digit number that the IRS assigns to organizations in the following format: 00-0000000 (en español).
What should a board do once it suspects or has discovered evidence of embezzlement? Clifford Perlman details the responsibilities of the board when funds go missing. (Nonprofit Quarterly)
When Funds Go Missing, What Can You Do? What Must You Do?
Exempt Organizations Public Disclosure - Obtaining Copies of Documents from IRS - Sometimes people want to see a specific nonprofit's Form 1023, also known as its exemption application. This question usually comes from would-be nonprofits that want to refer to Form 1023 samples from similar organizations as they fill out their own applications.
David Heinen, Vice President for Public Policy and Advocacy, North Carolina Center for Nonprofits
Earlier this year, the Center organized a series of Nonprofit Town Hall meetings around the state. These meetings – in Fayetteville, Charlotte, Winston-Salem, Greensboro, Jacksonville, Research Triangle Park, and Asheville – gave nonprofits an opportunity to connect with elected officials, learn about nonprofit sector trends and policy issues, and share their concerns about how the current political climate may affect their organizations.