We have a great deal of experience in forming nonprofit entities. We primarily deal with business leagues which are tax exempt under Internal Revenue Code Section 501(c)(6), although we also work with a number of public charities and private foundations which are exempt under Internal Revenue Code Section 501(c)(3). Each of these entity types need to follow different sets of rules and procedures and are designed for different purposes. We can take all necessary actions from incorporating the entity through filing the tax exemption applications with the Internal Revenue Service and any state tax authorities; additionally, we can assist in the appeals process in the event of an adverse determination.

In the event that the exempt purpose of the organization changes, or if for operational reasons it becomes important to modify the structure of the entity, we are also able to assist. We also have a great deal of experience in nonprofit corporate governance and will be able to help establish a structure for your organization.

Nonprofit tax planning generally involves monitoring the entity’s faithful adherence to its exempt purpose, screening related party transactions, and monitoring the amount and type of unrelated business income. We have experience in addressing all of these needs and regularly consult on such matters. Additionally, we can assist in dealing with tax authorities in audits, appealing adverse rulings, or proactively requesting private letter rulings on specific transactions.

The contractual issues facing nonprofit entities include general business contracts (such as leases and purchases), agreements with members and/or donors, and typically agreements with management personnel or a management firm. Since all transactions entered into by the nonprofit entity need to be reviewed for tax compliance, due to our tax expertise we are in a better position to give guidance than most transactional firms.