Compliance Considerations When Creating a 501(c)(3) Nonprofit Website
Creating a website for your 501(c)(3) nonprofit isn't just about design and content. It's critical to ensure compliance with legal, ethical, and financial guidelines. Failing to do so could put your nonprofit's tax-exempt status at risk, and could also risk any trust you've built with actual or prospective donors. Read on for best practices to consider when creating your 501(c)(3) nonprofit's website:
1. Maintain Transparency
Transparency is a cornerstone of nonprofit operations and a key requirement for 501(c)(3) organizations. Your website should:
Clearly Display Your Mission and Activities: Clearly communicate your mission, programs, and how donations are used.
Publish Financial Information: Include links to your Form 990 (required tax filings) and annual reports. This demonstrates accountability and builds donor confidence.
Provide Contact Information: Include a phone number, email address, and physical mailing address to assure visitors your organization is legitimate and approachable.
2. Comply With Fundraising Regulations
When soliciting donations online, you must adhere to state and federal fundraising laws.
State Charitable Solicitation Registration: Many states require 501(c)(3) nonprofit organizations to register before soliciting donations within their borders, including online contributions.
Payment Processing and Security: Use secure payment platforms to process online donations.
Disclosures: Include necessary disclaimers about how donations will be used and whether they are tax-deductible.
3. Privacy Policy and Data Protection
Respecting donor and visitor privacy is both an ethical obligation and a compliance requirement in many jurisdictions.
Develop a Privacy Policy: Clearly explain how you collect, use, and protect visitor information. This is especially important if you collect email addresses, personal details, or payment information.
Develop a Terms of Use Agreement: Outline permissible use of your website and its content. While it may not always be legally required, having a well-crafted Terms of Use Agreement (also referred to as Terms and Conditions) provides multiple benefits that protect your business, including limiting your business's liability for errors or outdated information.
Comply With Data Protection Laws: Be aware of regulations such as the General Data Protection Regulation (GDPR) in the EU or the California Consumer Privacy Act (CCPA) in the U.S., depending on where your audience is located.
4. Adhere to Accessibility Standards
Ensuring your website is accessible to individuals with disabilities is not just good practice, but also a legal requirement under the Americans with Disabilities Act (ADA).
Use Accessible Design Features: Include alt text for images, transcripts for audio/video content, and clear navigation.
Follow WCAG Guidelines: Refer to the Web Content Accessibility Guidelines (WCAG) to meet compliance standards and create an inclusive experience.
5. Avoid Political Activity
501(c)(3) nonprofit organizations are restricted from engaging in political campaigns or endorsing candidates.
Steer Clear of Political Messaging: Ensure your content does not include endorsements or language that could be interpreted as partisan activity.
Advocacy vs. Lobbying: While advocacy is generally permissible, substantial lobbying efforts may jeopardize your tax-exempt status. If you include advocacy content, consult IRS guidelines and a qualified attorney to stay compliant.
6. Intellectual Property and Copyright Compliance
Use Licensed Content: Ensure all images, videos, and other media on your site are properly licensed or created in-house to avoid copyright issues.
Credit Third-Party Materials: If you use external content, provide proper attribution as required by the copyright owner.
7. Display IRS Determination Letter
To reassure potential donors of your tax-exempt status, consider uploading your IRS determination letter or providing a clear statement of your 501(c)(3) designation, often included in the footer of your website and/or on your website's donation page.
8. Regularly Audit Your Content and Policies
Review Annually: Regularly update financials, reports, and policies to ensure your website stays compliant.
Stay Informed: Laws and regulations evolve, so keep an eye on updates that may affect your online presence.
Conclusion
Compliance is an essential aspect of creating and maintaining a website for your 501(c)(3) nonprofit. It not only safeguards your organization’s tax-exempt status, but also builds trust with your supporters. By focusing on transparency, security, accessibility, and adherence to legal requirements, your nonprofit can confidently use its website to further its mission and create a lasting impact.
Need help? Schedule a consultation with Ariella Law.
The information on this website is for informational purposes only, and does not constitute legal advice.
