What are the requirements concerning disclosure of financial information by a nonprofit?

In South Dakota, nonprofit organizations must comply with state and federal laws regarding financial disclosure in order to qualify for and maintain their tax-exempt status. Nonprofits must disclose their financial information to the South Dakota Secretary of State, including an itemized statement of income and expenses, balance sheets, and any other financial documents required by state law. This information must be made available for public inspection and must be updated and submitted annually. Nonprofits must also submit an annual report to the Attorney General outlining their activities and programs during the previous year. This report must include a summary of the nonprofit’s activities, including program accomplishments, sources of income, and expenses. It must also include a detailed financial statement, showing the total assets and liabilities of the organization. The IRS requires all 501(c)(3) organizations to file a Form 990 or Form 990-EZ each year to provide information about their income, balance sheet, program accomplishments, and other activities. This form is publicly available online. Ultimately, it is important for nonprofits to ensure they are disclosing all of their financial information as required by law in order to preserve their nonprofit status and remain in compliance with South Dakota and federal regulations.

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