What are the board's legal responsibilities?

Summary:

The Board is ultimately responsible for the performance of the organization in all areas of its work. From the Minnesota Council of Nonprofits.

Answer:

From the Minnesota Council of Nonprofits (http://www.mncn.org
):
The following is neither intended nor to be construed as legal
advice....

As a nonprofit, you need to ensure that your organization is in
compliance with federal and state and federal law. The Minnesota
Council
of Nonprofits has compiled this checklist to help you remember some
of
the tasks that are required.

• File Form 990 with the IRS and the Minnesota State Attorney
  General's
  Office, Charities Division on an annual basis if the organization
  has
  more than $25,000 a year in financial activity (purely religious
  organizations exempt).
  
• Have an audit completed if total organizational revenue exceeds
  $350,000
  in a year; file with the charities division of the State Attorney
  General's Office.
  
• Report change of name, address, or amendments to the Articles of
  Incorporation to the Secretary of State and pay fee for such
  changes.
  
• Make Forms 990 and 1023 available to the public.
  
• Report any Unrelated Business Income (UBI) to the State
  Department of
  Revenue and the IRS, and send tax payments with form 990T.
  
• Withhold taxes from employees, and send withholding payments to
  the IRS
  and MN Department of Revenue.
  
• Comply with laws that affect all employers including: ADA, OSHA, FLSA,
  FICA,
  COBRA, Family Medical Leave Act.
  
• Report any lobbying activities on Form 990, and register as a
  lobbyist
  if required by the Minnesota Ethical Practices Board.
  
• Give receipts to donors for contributions above $250.
  
• Collect sales tax on items sold by your organization, unless you
  are
  selling tickets to performances as a performing arts organization.
  
• Get court approval for distribution of assets.
  
• If the organization conducts charitable gambling activities,
  register
  with the gambling board.
  
• If the organization owns real property, pay property taxes or
  obtain an
  exemption from the county where the property is located.
  
• If the organization sends bulk mail, pay regular bulk mail rate
  or
  obtain a nonprofit bulk mail permit.
  
• Comply with the terms of donations; promises made to donors are
  legally
  binding. Funds given for specific projects or programs need to be
  kept
  separate.
  
• Comply with Minnesota state law regarding conflicts of interest.
  
• Make sure any professional fundraisers register with the State
  Attorney
  General's Office, Charities Division; file copy of contract.
  
• Obtain city permits for all cities in which the organization
  actively
  solicits door-to-door by paid solicitors.
  
• Record minutes of board and annual meetings
  

May 22, 1996

For more information contact:

Minnesota Council of Nonprofits

2700 University Ave. W. #250

St. Paul, MN 55114

Phone: (612) 642-1904

Fax: (612) 642-1517

http://www.mncn.org

email: mcn@mncn.org

The Free Management Library provides additional information
about legal considerations for board members along with an overview of
liability insurance. See
http://www.mapnp.org/library/boards/boards.htm#anchor153271

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Revised 8/11/99 -- CM