Managing The Tax Status Of Not-For-Profit & Tax-Exempt Organizations
At the core of every nonprofit organization is its adherence to the tax code. At the core of Goldburd McCone LLP is an understanding of that code.
Our tax and corporate law attorneys advise nonprofits throughout the United States, on compliance and management to maintain the all-important tax-exempt status. We assist executives and governing boards of 501(c)(3) and other not-for-profits in start-up and all facets of building an organization.
Ensure Your Organization Adheres To The Code
The Internal Revenue Code controls every not-for-profit: how they operate, how services may be delivered, the reach of the social benefits it can create and the community good it can achieve. Adherence to the code is crucial to an organization’s success and to its overall mission. The complexities involved require effective and tax-intelligent management and not just an understanding of the compliance issues applicable to tax-exempt nonprofits, but a mastery of them.
Our goal is to empower nonprofit organizations with tax knowledge from formation through growth, expansion and beyond. While reverence to compliance with federal, state and local laws and regulations is paramount, we also counsel on best practices in governance and strategies for engaging in activities that generate revenue. We work hand in hand with board membership to cement their fiduciary duties so they can steer the course of their organizations.
Full Service Legal Support For Nonprofits
Our services to tax-exempt organizations covers the spectrum:
- Formation and obtaining government clearance for tax exemption
- Bylaws and governance
- Compliance program creation
- Executive compensation
- Fiduciary training
- For-profit subsidiaries/affiliations
- Dissolutions
- Unrelated business income tax
- Private inurement, excess benefit transactions and private benefit compliance
- Business operations, such as the negotiation and drafting of contracts
- Exemption from state and local income tax, real property tax and sales and use tax
- Review of annual filings, such as IRS Forms 990 and 990-PF
- Audits, investigations and proceedings by government bodies like the IRS and state attorneys general
- Conversions to taxable and tax-exempt status
Schedule A Consultation With Savvy Attorneys
For assistance managing the tax implications of your not-for-profit or tax-exempt organization, contact Goldburd McCone LLP today at our office in Manhattan to schedule your case evaluation. Call 212-302-9400, toll-free at 844-653-2873, or send us an email.
Frequently Asked Questions
What is a nonprofit attorney?
A nonprofit lawyer protects your organization from regulatory missteps that could unravel your tax-exempt status, guides you through the intricate web of federal and state requirements, and helps prevent expensive legal errors that drain resources from your mission.
Who can sue a nonprofit organization?
A nonprofit organization can face lawsuits from these parties:
- Employees and volunteers – May bring claims for wrongful termination, discrimination, wage violations, workplace injuries, or harassment issues that occurred during their service to the organization.
- Board members and officers – Can sue over governance disputes, breach of fiduciary duty allegations, or conflicts of interest, and may also be sued individually for their decisions and actions.
- Donors and members – May initiate legal action if contributions were misused, promised benefits weren’t delivered, restricted gift agreements were violated, or the organization deviated from its stated mission.
- Government agencies – Federal, state, and local authorities can pursue legal action for tax violations, regulatory non-compliance, or failure to file required reports, with the IRS having particular power to challenge tax-exempt status.
- Vendors and contractors – Often sue over unpaid invoices, breach of contract, disputed service agreements, or disagreements about the scope and quality of delivered work.
- Beneficiaries and service recipients – Can bring lawsuits for negligence, discrimination in service delivery, breach of confidentiality, or harm caused by the organization’s programs and activities.
- Other nonprofits and competitors – May pursue legal remedies for trademark infringement, unfair competition, defamation, or breach of partnership and collaboration agreements.
- Insurance companies – Can sue to recover payments, dispute coverage claims, or challenge the organization’s representations made during the application process.
- Landlords and tenants – May bring actions related to lease violations, property damage, unpaid rent, or disputes over facility use and maintenance responsibilities.
