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Compliance Risks Three Facing Nonprofits State Regulations Nonprofits must collect sales tax on all items subject to tax. You must be licensed in all states where transactions take place. Review licensing requirements in all states where transactions take place. Ensure business licenses are up-to-date for telecomuting employees. Test to Qualify > 1/3 of its support from publicly supported organizations, governmental units, and/or the general public? >1/3 of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions and <1/3 of its support fromgross investment income? Do you support one of above Publicly Supported Charities? Public Charity Status Do You Qualify? Do you have employees or contrators? Employee Classification Understanding the employee/employer relationship structure is key. For more information visit: www.cbiz.com
