When the idea to create a nonprofit first enters your mind, it can be tempting to rush out, set up shop, and begin helping people as quickly as possible. Unfortunately, this approach can lead to expensive, potentially catastrophic issues down the line. At the Semanchik Law Group, we recommend taking a more considered approach to founding your nonprofit organization – an approach that is designed to help you avoid making costly mistakes, such as:
Creating Confusing or Unreasonable Bylaws
Your nonprofit’s bylaws are the rules and regulations that dictate how the organization makes decisions and takes action. If your bylaws are confusing, unreasonable or otherwise not fit for purpose, you are likely to find yourself dealing with internal disagreements and legal issues before too long. If you would like to avoid these problems, you should make sure that your bylaws are clear and custom-made for your nonprofit – a service which the Semanchik Law Group’s knowledgeable nonprofit attorneys are always happy to provide.
Appointing Ineffective or Damaging Board Members
A nonprofit’s board members are the individuals who will be tasked with making important decisions regarding the organization’s future. If your California nonprofit’s board members are disinterested in their role or are failing to turn up to meetings, you may have difficulty keeping the organization fully-focused on its goals and moving in the right direction. The Semanchik Law Group in San Diego, CA can help you find, vet, and appoint board members who will be engaged and motivated to achieve your nonprofit’s core goals.
Failing to Create a Functioning Financial Records System
Nonprofits exist to serve people, not make money. However, even though you are not driven by profits, you must still manage, record, and maintain your organization’s finances in an intelligent manner. Failure to do so is likely to result in monetary troubles later down the line. In fact, if your finances are totally disorganized, you may even fun afoul of compliance regulations before too long.
Inaccurately Completing Formation Documentation
When founding your California nonprofit, you will need to file paperwork with multiple state and federal bodies, including the IRS, the California Attorney General, and California Franchise Tax Board. If your documentation is incomplete, misleading, or otherwise inaccurate, your filings may be denied or you may run into other legal difficulties later down the line. If you would like to set your new nonprofit up for success from the beginning, you should have one of the Semanchik Law Group’s experienced attorneys submit your documentation on your behalf. We will ensure that your filing is accurate and fully compliant with all rules and regulations.
Your San Diego Nonprofit Attorneys
Here at the Semanchik Law Group, we are proud to provide a wide range of nonprofit legal services to clients in San Diego and throughout Southern California. Whether you need help filing your nonprofit formation paperwork or making sure that you are compliant with all applicable state and federal laws, we always available. To discuss your nonprofit’s legal needs with one of our attorneys, just give us a call at (619) 535-1811.