What record-keeping requirements must a nonprofit comply with?

In South Dakota, nonprofit organizations must comply with a variety of record-keeping requirements. These records are important for the organization to manage its finances, track donations, and ensure its operations are conducted lawfully and ethically. The South Dakota Nonprofit Corporation Act requires nonprofit organizations to maintain records that accurately reflect all of their transactions. These records must include accounting ledgers that accurately reflect the financial activity of the organization. The organization must also create internal accounting policies and procedures to ensure that accurate records are kept. Nonprofit organizations in South Dakota must also maintain accurate records of donations received. This includes the name and contact information of donors, as well as the amount and type of donation received. Donors must be able to provide proof of donation for any deductions they are claiming. Nonprofit organizations in South Dakota must also keep records that demonstrate compliance with applicable state laws. This includes records of board meetings, financial statements, and minutes. It is also important to keep records of all contracts, including those between the nonprofit and vendors, employees, volunteers, or any other third party. In addition to complying with state laws, nonprofits must also keep records of their activities that demonstrate compliance with any applicable federal laws. This includes records of tax-exempt status and Internal Revenue Service Forms 990, the annual statement of financial activity required of most nonprofits. Overall, nonprofit organizations in South Dakota must maintain records that accurately reflect their financial activity, donations, and compliance with applicable state and federal laws. These records should be kept safely and securely, and should be updated regularly to ensure compliance.

What record-keeping requirements must a nonprofit comply with?

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