The IRS recently denied 501(c)(3) public charity status to a social justice organization that was related to a 501(c)(4) social welfare organization. (PLR 201408030) What went wrong? Plenty, with much to learn for nonprofit organizations seeking to navigate the increasingly choppy waters…
Nonprofit corporations are creatures of state law for corporate status and operations, while also subject to federal law for tax-exempt purposes. Under which state law should a nonprofit incorporate, and what other state corporate requirements should be considered? The following questions…
Forming a new nonprofit organization for charitable, religious, or educational purposes? How exciting! Doing so involves careful planning, leadership development, donor prospecting, and of course nonprofit paperwork. For Section 501(c)(3) tax-exempt status, that likely means completing the IRS Form 1023…
“From our birthday, until we die, / Is but the winking of an eye." - William Butler Yeats How exciting to start a nonprofit, to dream about all the good to accomplish in the world! The starting passion, joy, and…
Starting a Section 501(c)(3) nonprofit can be quite an adventure! What legal steps are required? While the details may vary widely, the concrete steps may be best summarized as follows: (1) form a nonprofit corporation, consistent with Section 501(c)(3) requirements;…
Churches, synagogues, mosques, temples, and other houses of worship have long enjoyed Section 501(c)(3) public charity status, with resulting exemption from IRS Form 990 filings, availability of clergy housing allowances, and religious liberty protections. When, why, and how should other…
If your nonprofit provides facility usage to another organization, could its property consequently lose tax-exempt qualification? That question often becomes extremely important to many organizations as they consider potential opportunities for revenue generation, wise stewardship of their resources, and issues…
“Can we get sales tax exemption?” Wagenmaker & Oberly, LLC law firm’s State Compliance and Tax Practice Group handles this question on a regular basis, usually for a specific state and increasingly with an eye toward online activity and multi-state…
Innovative nonprofit leaders frequently leverage so-called “multicorporate structures” to achieve multiple beneficial objectives. May nonprofit corporations do so, such as through forming subsidiaries? If so, when, and why? What are the liability and tax implications? This article describes legal aspects…
Many nonprofits use employee handbooks to serve the valuable function of providing their employees with advance notice of work expectations, applicable requirements, and other responsibilities for a productive and mutually beneficial relationship. Such goals may likewise apply to volunteers serving…
