Compliance may seem tedious, but for faith-based nonprofits, it is an opportunity to live out the Gospel through faithfulness in small things. In this lesson, we’ll explore the spirituality of compliance — how following legal and tax obligations can serve as a witness to Christ, prevent scandal, and become an offering of love to God. From Scripture to St. Thérèse’s “little way,” discover how even the most mundane tasks can serve your mission and sanctify your work.

Bylaws often establish legally binding voting requirements for key decisions made by a nonprofit organization's leadership and board of directors. Yet many organizations rely on outdated or copied provisions without considering their impact. Understanding how your bylaws govern board approvals—whether by majority, supermajority, or unanimous vote—can prevent governance challenges and costly disputes. Reviewing these provisions now helps ensure your organization’s rules align with its needs and avoids unnecessary legal complications.

A compliance calendar is one of the most effective tools for keeping a nonprofit organized, protected, and operating smoothly. By tracking key filing obligations, important deadlines, and the individuals responsible for each task, a well-maintained calendar helps prevent costly fines, protects tax-exempt status, and safeguards an organization’s reputation. Staying proactive with compliance allows nonprofits to focus more fully on their mission and service.

Good record keeping is essential for nonprofits to stay compliant, secure funding, and operate smoothly. This lesson explains why corporate records matter, highlights the key documents every organization should maintain, and shares best practices for organizing, storing, and safeguarding them. “Spring cleaning” your records now can strengthen your nonprofit and prepare it for future opportunities.

Most organizations must file the Internal Revenue Service (“IRS”) Form 990 or request an extension by May 15. Many organizations also have state tax filings, charitable registration forms, corporate annual reports, or some combination of these due on the same date.

Staying compliant with state and federal filing requirements is essential for 501(c)(3) nonprofits to maintain tax-exempt status and avoid costly penalties. This lesson explains annual reporting obligations, including state filings, IRS Form 990 requirements, and eligibility for simplified filings like Form 990-EZ or 990-N. It also outlines the consequences of non-compliance, steps for reinstating tax-exempt status if revoked, and best practices to keep your organization in good standing.

Volunteers are essential to the work of faith-based nonprofits. But without proper management, they can create significant legal, financial, and reputational risks. This guide explains how to strengthen volunteer programs, establish clear policies, provide proper training, and ensure adequate protections through effective management and insurance coverage.

In this lesson, learn when nonprofits charitable and religious organizations should consider an external audit, why audits matter, and how they differ from financial reviews. We’ll cover legal requirements, donor expectations, and key factors to help your organization make informed financial decisions.

Conflicted transactions can create serious legal, financial, and reputational risks for faith-based nonprofits—even when they appear to be a “great deal.” Directors and officers have a duty of loyalty to put the organization’s mission ahead of personal interests. Special due diligence is required whenever a nonprofit does business with an individual or company that is also an officer or director of the nonprofit. This lesson explains common misconceptions, outlines the approval process, and highlights best practices for adopting policies, educating leadership, and protecting your organization.

Many vendors include provisions in their contracts and user agreements empowering the vendor to unilaterally cut service to faith-based organizations based on subjectively assessed violations of ambiguous hate speech policies. Protect your organization by negotiating for provisions that provide reasonable protection for free speech and religious exercise.

Faith-based nonprofits must navigate complex rules around lobbying, issue advocacy, and political campaign activity to maintain tax-exempt status. This lesson explains the key differences between permissible advocacy and prohibited political activity, outlines IRS restrictions for 501(c)(3) organizations, and offers best practices to engage with important issues while staying compliant with applicable laws.

How a nonprofit responds to a government inquiry, whether a routine regulatory review or a criminal investigation, can significantly affect its operations, reputation, and ability to raise funds. This guide offers an overview of common government investigations and provides strategies to help organizations navigate the process effectively.

Nonprofit organizations exempt from federal income tax under 501(c)(3) are required to make some of their records available for public inspection. Many nonprofit organizations file their IRS Form 990 in May, which means inspection requests often come this time of year from members of the public who want to review your organization's Form 990. This lesson will teach you what you need to know and what procedures you must follow when you receive a request for you Form 990.