What are the requirements concerning the use of nonprofit assets?

In South Dakota, nonprofit organizations are subject to certain state laws and regulations concerning the use of nonprofit assets. Nonprofits are required to use their funds for the exclusive purpose of the organization as stated in its articles of incorporation or other governing documents. All assets of the organization must be used for the purpose of carrying out its objectives as stated in the governing documents. Nonprofits must also ensure that their assets are used only for charitable purposes, and never for the private benefit or gain of any individual or group. This means that an organization’s funds and assets cannot be used to provide financial benefit of any kind to any of the organization’s officers, staff, or members. Nonprofits should also take great care to prevent any misuse of their resources, particularly with regards to the financial side of their operations. This includes making sure their funds are used for authorized purposes, that donations are given properly and that appropriate bookkeeping and financial record-keeping are put in place. Finally, nonprofits must avoid engaging in any form of self-dealing, which means they cannot use their funds in any way that benefits themselves, their officers, staff or members. By following these requirements concerning the use of nonprofit assets, organizations in South Dakota can ensure that they comply with state laws and regulations.

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What are the requirements concerning the use of nonprofit assets?

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