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are appointed by the Board. Nonprofits should hold regular meetings where the actions and votes of the Board are documented in meeting minutes, and an annual meeting should be held for the election of Board members and officers.

Operating Restrictions. Nonprofits that qualify as 501(c) (3) organizations are highly regulated entities. Strict rules apply to both their activities and their governance. No part of the activities or the net earnings can unfairly benefit any director, officer, or private individual. Reasonable salaries are permitted, but excess revenue cannot otherwise be distributed to individuals associated with the nonprofit. All of a nonprofit’s assets are permanently dedicated to a charitable purpose. In the event that a 501(c)(3) organization must cease operations, all assets remaining after debts are paid must be distributed for a charitable purpose. Finally, lobbying, and other legislative activity are highly scrutinized and should generally be avoided. Intervention in political campaigns or the endorsement/ anti-endorsement of candidates for public office is strictly prohibited.

With a little pre-planning and guidance, an attorney can help make your charitable mission a successful reality.