HR9495 is stirring up concern among nonprofit leaders, particularly those engaged in advocacy, grassroots, and social justice work. This bill has the potential to heighten scrutiny and even revoke tax-exempt status for organizations deemed "dangerous." In this episode, I break down how you can safeguard your nonprofit from this uncertainty by building resilience in four key areas: mission alignment, governance, compliance, and transparency. I’ll guide you through actionable steps and questions to help your organization stay strong, prepared, and impactful in 2025.
What You’ll Learn:
- Why organizational resilience is critical for navigating scrutiny and funding challenges.
- The 4 essential areas to focus on: mission alignment, governance, compliance, and transparency.
- Practical, actionable steps to ensure your nonprofit is prepared for increased oversight.
Key Takeaways:
- Align your programs and activities with your mission to strengthen trust and legitimacy.
- An engaged and informed board is vital for legal compliance and strategic accountability.
- Transparent financial and operational practices build donor trust and mitigate risks.
Step-by-Step Process:
- Mission Alignment
- Assess whether all programs align with your stated mission.
- Define clear, mission-aligned success metrics.
- Ensure advocacy activities comply with IRS and legal guidelines.
- Action: Collect and organize data to demonstrate impact.
- Governance
- Ensure board members understand their fiduciary duties.
- Identify and address organizational risks.
- Strengthen board committees for compliance and accountability.
- Action: Conduct a board review and create a risk register.
- Compliance
- Review federal filings, state registrations, and organizational policies.
- Build systems to handle scrutiny and mitigate compliance gaps.
- Develop policies for donor privacy, anti-terrorism funding, and whistleblower protections.
- Action: Conduct a legal audit and update policies.
- Transparency
- Document internal financial controls and establish clear approval processes.
- Be transparent about funding sources and expenditures.
- Action: Review financial controls and address overlooked risk areas.
Resources Mentioned:
- Resilience Ready Toolkit: Includes discussion guides, checklists, models, and templates for mission alignment, governance, compliance, and transparency. Get it here.
- ACLU Overview of HR9495: In-depth breakdown of the bill and its implications. Visit ACLU.
- NY Lawyers for Public Interest: Additional perspectives on HR9495. Visit NYLPI.
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