Essential Year-End Compliance Tips for Attorneys and Nonprofits
As the year comes to a close, it’s easy to get caught up in the hustle and bustle of wrapping up client matters, fundraising campaigns, and other pressing tasks. However, for attorneys and nonprofit organizations, the year’s end is also a crucial time to ensure all compliance and reporting requirements are in order.
Staying proactive now can save time, avoid penalties, and set you up for success in the new year. Below are the essential steps to help you close out the year smoothly.
1. File Your Annual Reports
Annual reports are a fundamental requirement for most law firms and nonprofit organizations to maintain good standing with the state. These filings provide updates on essential information, such as changes in directors, officers, or business addresses. Missing a filing deadline can result in penalties or, worse, the loss of your entity’s good standing.
How to Stay on Top of Annual Reports:
Verify your entity’s current status with the state.
Gather the required information, such as updated officer and director lists (for nonprofits) or firm details (for attorneys).
Submit the report by your state’s specific deadline.
Pro Tip: Use a compliance calendar or automated software to track due dates and ensure nothing slips through the cracks.
2. Review and Update Your Contracts
Contracts are the backbone of both legal practices and nonprofit operations, governing relationships with clients, vendors, donors, and other stakeholders. Outdated or poorly managed contracts can expose you to unnecessary risk.
What to Check During a Contract Review:
Identify contracts that are expiring or have automatic renewal clauses.
Ensure compliance with any new laws or regulations introduced during the year.
Confirm that the terms still align with your organization’s goals or operational needs.
Pro Tip: Set aside dedicated time to review contracts annually or work with a legal professional to ensure all agreements are airtight and up to date.
3. Audit and Prepare Financial Statements
Financial accuracy is vital for both strategic planning and compliance purposes. For attorneys, it helps with budgeting and assessing firm growth. For nonprofits, transparent financial records are critical for building donor trust and meeting reporting obligations.
Steps for Financial Year-End Prep:
Reconcile accounts to ensure there are no discrepancies.
Review outstanding invoices or payments to ensure all receivables and payables are accounted for.
For nonprofits: Confirm that donor funds and grants are properly allocated and documented.
Pro Tip: Consider working with a financial advisor or CPA to review your statements and address any red flags before filing taxes.
4. Plan Ahead for 2026
Once the immediate compliance tasks are handled, take some time to plan for the upcoming year. Year-end reviews are an excellent opportunity to assess what worked well, identify gaps, and set goals for the future.
How to Set the Stage for Success:
Create a compliance and reporting checklist for 2026 to stay organized.
Evaluate whether additional operational or legal support is needed to streamline your workload.
Schedule periodic check-ins throughout the year to review contracts, financials, and compliance tasks.
Pro Tip: A mid-year review can prevent last-minute scrambles at the end of next year.
Closing Thoughts
Year-end compliance might not be the most exciting task on your to-do list, but it’s one of the most important. Taking the time now to file reports, review contracts, and prepare financials will not only help you avoid headaches but also position you for success in 2026.
If you’re feeling overwhelmed or unsure where to start, I’m here to help. Let’s connect for a consultation and get your legal practice or nonprofit set up for a smooth year-end and a strong start to the new year.
By tackling compliance now, you’re investing in the growth and stability of your organization—so why wait?
