A nonprofit registered agent serves as an organization’s official legal point of contact. The registered agent receives government notices, service of process, and other important legal documents and then promptly notifies the nonprofit. Registered agents must be located at actual street addresses, not P.O. boxes. Registered agents who are experienced with other aspects of nonprofit compliance, like charitable registrations, can also help to keep your nonprofit aware of renewal updates and deadlines. Failure to appoint and maintain a registered agent will typically result in involuntary administrative dissolution of your nonprofit organization. If this happens, your nonprofit’s tax-exempt status could be jeopardized. This makes it extremely important to appoint a registered agent who is reliable, experienced, and discreet.

A nonprofit is required to appoint a registered agent in the state where it is incorporated, in states where it is registered as a legal corporate entity, and (in many cases) in states where it is registered to solicit charitable donations.

While naming a leader or board member as your registered agent may be easy in your state of domicile, the requirements quickly become more complicated as your organization grows. This is why many nonprofits choose to partner with professional compliance experts and registered agent services to minimize guesswork and risk.

Nonprofits can appoint an individual, such as a staff or board member, as their registered agent in many states. There are several requirements that they must meet, however. This individual must:

• Reside or work in the state
• Make their name and physical address publicly accessible in order to be contacted with legal notices on behalf of the nonprofit
• Be available at that address during normal business hours
However, there are a few significant drawbacks to consider when naming an individual as your nonprofit’s registered agent:
• Risk — Any time that your registered agent spends away from their listed address could pose a risk to the prompt delivery of urgent legal documents.
• Cost— Individual registered agents are likely to change frequently. Each time your registered agent changes, you must update the relevant state agency and typically pay a change filing fee.

Working with a dedicated registered agent service specialized in supporting nonprofits solves these problems. With reliable, full-time representation, your nonprofit can rest assured that you’ll be quickly notified of incoming documents and that your service will promptly handle change filings as needed.

Nonprofit registered agent services from Labyrinth, Inc. take the guesswork out of staying compliant. Contact us to learn more and discuss your needs.