BUSINESS AND REAL ESTATE | Non-Profit Entities

As a result of numerous attempts to take advantage of the tax-exempt status of non-profit, charitable organizations for private gain, regulation by the IRS has become increasingly burdensome over the past several years. The formation and operation of these very special organizations require ever-increasing attention to:

• Planning the structure of the non-profit organization, giving particular attention to issues concerning governance avoidance of conflicts of interest and self-dealing and the permitted scope of operations;
• Proper formation of the non-profit entity, using corporate or trust documents containing appropriate provisions for IRS approval of tax-exempt status;
• Applying to IRS for tax-exempt status, including preparation of the lengthy and complex Form 1023;
• Monitoring the activities of the governing board to ensure compliance with government and internal corporate requirements;
• Assisting with issues of executive compensation and other transactions to avoid allegations that the organization is operated, in whole or in part, for the private benefit of its controlling persons (private inurement).

Attorneys in our Non-Profit Entities Practice Area have significant experience in each of these areas, and work closely with clients to obtain and retain their tax-exempt status, to assist them in fulfilling their charitable missions.