Abstract Leaders of nonprofit organizations have challenging responsibilities of satisfying the demands of all their stakeholders by obeying state and federal regulations. Noncompliance of regulations can quickly cause a nonprofit organization to lose its tax exempt status and become nonexistent; thus, it appears that most nonprofits are choosing to prioritize compliance, while struggling to maintain focus on their mission and services. Using the conceptual framework of transformational leadership and general system theories, this case study was to explore strategies leaders of nonprofits organizations in Pennsylvania that cater to the needs of people with disabilities use for decreasing regulatory citations to maintain their tax-exempt status. The population for this study consisted of 5 leaders of a single nonprofit organization in Pennsylvania, who were purposefully selected with experience for managing nonprofit organizations prevent citations and maintain their tax-exempt status. I collected data through semistructured interviews and analyzed the data through inducive word phrase coding and theme interpretation. Five themes emerged from my analysis of the data: the use of rules as a guide for quality improvement, leadership focus on organizational strategy, teamwork, effective communication, and training, as a means of empowering and educating team members on organizational values and rules. This study contributes to positive social change by teaching nonprofit leaders’ various strategies for decreasing regulatory citations, fines, to maintain their tax-exempt status, and fulfill their social missions of providing needed services in communities.