Setting up a nonprofit organization can be a laborious process. Among other tasks, you have to carefully define the mission of your prospective organization, select the right legal structure it will operate under, assemble a board of directors, draft proper bylaws, file various documents with the government, and obtain any necessary permits and licenses. And that’s only the beginning of your journey in the nonprofit world. After this, you’re expected to comply with ongoing state government filing requirements, including the timely submission of what is commonly known as an annual report.
It is important to understand that what we’re discussing here is not the financial report—often called an annual report—that public companies customarily file with the U.S. Securities and Exchange Commission (SEC) and present to their shareholders. Rather, an annual (or biennial) report is filed with the relevant governmental agency of the state in which the organization operates. These reports are much simpler in scope than SEC filings, and do not contain financial data relating to the organization. Their purpose is simply to ensure that certain basic information about a business entity, such as its official mailing address, is still current.
Failing to file an annual report can result in serious penalties imposed by the state, such as heavy fines and, if the issue is not resolved within a specified timeframe, dissolution of your organization. While your nonprofit annual report is past due, your organization will not be considered in good standing with the state, which can negatively impact your operations in various ways.
To help you in fulfilling your nonprofit annual report obligations, FastFilings has put together a simple infographic that explains more about these documents and how to fill them out properly. Keep reading to learn more about annual reports for nonprofits—and how FastFilings can help you with your reporting obligations.