Question.

How do non-profits and charities keep track of their liabilities?

Answer.

Develop a list of filings and statutory responsibilities. Ask other, similar organizations what kinds of statutes apply to them. Ask your auditor. Make sure it is the job of one person on the board to review the list to ensure it is accurate and to regularly report to the board about it being complete. The board should also require a regular report from its staff or appropriate volunteer saying that the Liability Checklist has been followed, and if not, why not.


 

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