For most nonprofit organizations, obtaining and maintaining tax-exempt status is paramount to their mission. Public charities, private foundations, social welfare organizations, trade associations, social clubs, and other exempt organizations under § 501(c) of the Internal Revenue Code are each subject to unique tax compliance considerations that are both complex and evolving. We regularly engage with the IRS and fellow nonprofit attorneys to remain at the vanguard of tax-exempt law and help our nonprofit clients with solution-focused guidance to the diversity of tax issues that arise with new transactions, projects, and structures. We also represent nonprofit organizations through all stages of IRS audits, including inquiries, examinations, and appeals.
Advising clients on the parameters of tax-exempt status and issuing legal opinions on proposed and existing activities, governance, and structures.
Counseling clients on impermissible private benefit, inurement, self-dealing and excess benefit transactions, and related reporting and correction procedures.
Educating on political campaign and lobbying restrictions, issue advocacy, and § 501(h) lobbying elections.
Advising on compliance with the heightened tax rules imposed on private foundations and sponsoring organizations to donor advised funds.
Structuring joint ventures between tax-exempt organizations and for-profit entities to accomplish unique public-private objectives and drafting and reviewing related affiliation and joint-venture agreements.
Advising on the best methods to mitigate unrelated business income tax liability and protect exempt status, whether through direct operation or the use of a taxable subsidiary.
Working with clients' accountants to review and advise on a diversity of legal compliance questions and disclosure rules for annual Form 990s and preparing reinstatement applications following auto-revocation.
Preparing miscellaneous requests for group rulings, unusual grants, scholarships, reclassification applications for private foundations seeking public charity status, and exemption from filing Form 990s.
Representing clients during IRS examinations through the inquiry, examination, and appeals stages, including compliance with the church-audit rules.