legal audits

NEO Law Group now offers a basic legal audit package for California nonprofit and tax-exempt entities at a fixed flat-rate cost.  The legal audit package services are intended to provide an overview of an organization’s non-financial governance, legal compliance, and risk management issues.  A legal audit package may be particularly appropriate for nonprofit organizations that have not recently reviewed their legal status and governance operations, or that have recently experienced a period of significant organizational transition.

The legal audit package described below includes the listed services.  However, should additional services be required or recommended above and beyond those listed, including those recommended as a result of the legal audit, upon an organization’s request, such services will be charged at NEO Law Group’s regular hourly rate pursuant to a separately executed engagement agreement.

Please contact NEO Law Group at 415.977.0558 or at info@neolawgroup.com for more information.

Basic Legal Audit
Cost - $1,000

As part of the Basic Legal Audit package, NEO Law Group attorneys will:

  • Check the organization’s status to conduct business in California with the Secretary of State
  • Check the organization’s registration status with the California Attorney General’s Registry of Charitable Trusts 
  • Check the organization’s current tax-exempt status and public charity or private foundation classification, if appropriate, with the Internal Revenue Service 
  • Check the organization’s current tax-exempt status with the California Franchise Tax Board
  • Review the purpose statement contained in the organization’s Articles of Incorporation for consistency with Internal Revenue Code (“IRC”) Section 501(c)(3) tax-exempt status and for possible implications with respect to property tax exemption (while other provisions in the Articles of Incorporation may be skim reviewed as part of this review, the Basic Legal Audit will not include any additional issues raised in such review)
  • Review the purpose statement in the organization’s Bylaws (if any) for consistency with IRC Section 501(c)(3) tax-exempt status and the organization’s Articles of Incorporation (other provisions in the Bylaws will not be reviewed as part of the Basic Legal Audit)
  • Provide a checklist for elections of directors and officers consistent with the governing documents and applicable California law
  • Provide a checklist for basic nonprofit ongoing required filings with the Internal Revenue Service, California Franchise Tax Board, California Secretary of State, and California Attorney General (ongoing counsel related to such filings is not included in the Basic Legal Audit)
  • Confer with you about the organization’s out-of-state activities and fundraising issues, including general counsel regarding whether additional qualifications and/or registrations may be required as a result of such activities (counsel related to obtaining such qualifications and/or registrations, and counsel related to any qualifications or registrations outside of the United States, is not included in the Basic Legal Audit) 
  • Provide guidelines on recording and maintaining minutes of Board and committee meetings
  • Provide a list of governance policies to consider adopting and/or reviewing and revising, if necessary (drafting or review of such policies not included in the Basic Legal Audit)