Monthly check-in 5: Legal compliance & risk management

  • Published on Jun 18, 2025
  • 1 minute(s) read
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Who is this for?

This content is designed for participants in Anti Entropy's SparkWell fiscal sponsorship program. While some context will be specific to SparkWell and may need more context, we've made these resources public because they may, nevertheless, be useful to others who may be founding or building an organization.

All check-ins
  1. Introduction & onboarding
  2. Mission, theory of change & impact evaluation
  3. Fundraising strategy & donor management
  4. Financial management & budgeting
  5. Legal compliance & risk management (current stage)
  6. Infosec & GDPR
  7. Brand development & marketing
  8. "Bus-proofing" & sustainability strategy
  9. HR systems & hiring strategy
  10. Board development & governance
  11. Revisited: Mission, theory of change & impact evaluation
  12. Graduation

Legal compliance & risk management

Why is this important?

When setting up a nonprofit, addressing legal compliance and risk management is essential to protect the organization, its staff, and its beneficiaries. Compliance ensures the nonprofit meets all legal, regulatory, and tax obligations, maintaining its good standing and eligibility for funding. Risk management helps identify and mitigate potential threats—such as financial mismanagement, liability issues, or reputational harm—before they become serious problems. Together, they safeguard the organization’s operations, reputation, and ability to pursue its mission effectively and sustainably.

Suggested reading

Nonprofit Operations Playbook:

Other Related Readings

Milestones

Aim to complete these before your next monthly check-in:

✔️ Business structure determined e.g. 501(c)(3)
✔️ Location/state determined

(Optional) Further outcomes

Consider completing these throughout the program:

✔️ Formation and recurring filings discussed e.g. Forms SS-4, 1023, 990, I-9, W-2
✔️ Registered agent discussed
✔️ Business insurance discussed
✔️ Key risks discussed and ranked

Next up: Infosec & GDPR

When setting up a nonprofit, considering information security and GDPR is vital to protect sensitive data, maintain trust, and comply with legal requirements.

See the Infosec & GDPR worksheet for more information.