Red Flags: What Every Nonprofit or Church Should Watch For

Most nonprofits and churches start with a big heart and a simple mission — to help, to serve, to give. But over time, even the most well-intentioned organizations can develop legal blind spots. If any of the following red flags sound familiar, it might be time for a legal review to protect your mission, your leaders, and your supporters. Read on to find out how to protect your Emporia, Abilene, Junction City, or other Kansas nonprofit organization.

1. No Updated Bylaws or Policies

If your bylaws are more than a few years old — or if no one’s looked at them since your founding — that’s a red flag. Kansas laws change, and your board needs clear guidance on meetings, voting, conflicts of interest, and officer roles. Outdated or missing bylaws can often lead to confusion or even internal disputes that undermine your mission.

2. Leadership Turnover without Proper Minutes

When board members or officers come and go without formal meeting minutes or written resolutions, your organization’s records become legally fragile. Every change in leadership, policy, or budget should be properly documented — not just remembered.

3. Mixing Personal and Organizational Finances

If donations or church tithes are handled in personal accounts “just for convenience,” or if reimbursements aren’t properly documented, it can create serious IRS and liability issues. Even small organizations need separate bank accounts, budgets — and clear paper trails.

4. No Employment or Volunteer Agreements

When staff or volunteers serve without written agreements or clear expectations, misunderstandings can turn into legal headaches. Every nonprofit should define roles, compensation (if any), confidentiality, and conduct standards in writing.

5. Lapsed State Filings or IRS Status

Kansas nonprofits must file annual reports, and churches or charities with 501(c)(3) status must stay current with the IRS. Missing filings or failing to renew your registered agent can quietly put your organization out of compliance — or even lead to loss of tax-exempt status.

6. Property or Liability Questions

If your organization owns or rents property, make sure insurance coverage, lease agreements, and liability waivers for events are up to date. Churches and nonprofits are often targets for liability claims — even from well-meaning attendees.

7. No Plan for Leadership Transitions

If your founder, pastor, or executive director were to step down unexpectedly, could your organization continue smoothly? A succession plan protects both the mission and the people who rely on your services.

Bottom Line

Your nonprofit or church exists to serve others — not to wrestle with red tape or be destroyed by preventable problems. But small issues today can grow into major legal problems tomorrow.

At Harvest Legal, we help Kansas nonprofits and churches create strong foundations with updated bylaws, policies and filings so they can focus on their mission — not their paperwork.

If you’ve spotted one of these red flags or have any other nagging concerns, it’s a good time to contact us for a legal tune-up. We can help you fix problems before they become crises.

Protect your mission, your members, and your message — legally and faithfully.