It may seem a harsh way

It may seem a harsh way to look at the topic of nonprofit minute keeping this way but it is true that your organization's nonprofit minutes can keep you out of jail.

Way back in original tax law history many nonprofits, ministries, and churches were regarded with a much higher level of esteem and in some cases even as being sovereign. With the passage of time however, progress, and the inundation of IRS regulations that have been written which have the power and force of law, nonprofits, the ministry and the church are now tax exempt "only by grace".

This grace came about via a United States Supreme Court Ruling and is ever at risk of rescinded. The current government has evolved over the years, into a very powerful force sometimes exercising authority not even given by the Constitution. Minutes are extremely important for faith based agencies and all non profits in order to protect this grace.

For those of you looking for ways to protect your nonprofit over time and avoid the potential of future physical jail time, there are a few things you should know.

As I have discussed in the past in my e-book on How to Start a Tax Exempt 501(c)3, having properly written Articles of Incorporation and great By-Laws are critical Incorporate a Church to business and organizational success.

Having a great Minute Book with many pages of well-written minutes in it, is the additional essential ingredient to compliment the articles and bylaws. Your organization must be prepared with non profit minutes to withstand a potential day of battle in the legal system should it become necessary.

The absence of The Minute Book can actually land you in jail or at least have you subjected to sanctions and hefty fines. Do you think you would really look good in an orange jumpsuit? If so, then disregard this article and stop reading now! The non profit minute book is the primary document a Judge will examine to determine if your business has been running according to the organizational By-Laws.

Wow what a key statement, to say that your tax-exempt business operations have to run in accordance with the Bylaws that you created and that you should be able to prove it. If there are no Minutes, the Judge will most likely do what is called "Rend the Veil," and the legal protection of the corporation [The "Veil"] will vanish.

When people refer to the Corporate Veil being pierced they are referring to a legal body now holding persons personally accountable for corporate activities rather than being protected which is the reason they incorporate in the first place. Now the liability will fall personally upon the leaders of the nonprofit, whether they have been active participants or not. The Law has a habit of saying that ignorance of the law is no excuse.

As one can easily see, in the title of this article, "Minutes" does not refer to a measurement of time but refers to the crucial ongoing reporting and record keeping of your organizational activities and your board of directors by creating and keeping good non profit minutes.

If one was to ask themselves, does my organization need Minutes, the answer to this provocative question is very simple. Everybody needs "Minutes", and the minute book should be written well and structured properly or one day serious consequences could result.

Be sure to look for part two of this article to continue seeing just how important minutes are and learn some critical guidelines for preparing them. Keep in mind while reading that the title is certainly true that a few "Minutes" can keep you out of jail.