We advise concerning the options for forming new non-profit organizations, draft the necessary documents to create the organization, and secure IRS recognition of tax-exempt status. We also provide state charitable solicitation registrations for 501(c)(3) organizations, as needed.
While it is possible to form a non-profit organization on your own, or use general practice law firms or Internet-based paralegal service, for many it becomes a dead end. Precious time is wasted in wheel-spinning. Some clients come to us after getting blank stares from lawyers and accountants who are not specialists in the laws which uniquely apply to non-profit organizations.
It is crucial that governing documents for certain non-profits, especially charitable organizations, say the right things. Otherwise, the organization fails to qualify for tax-exempt status. It is equally crucial that the organization’s application for tax-exempt status (IRS Form 1023 or Form 1024) and related documents be carefully crafted. Those applications are closely scrutinized by the IRS, and need to be done right the first time.
It is cheaper and easier to get it right from the start − starting with expert advice focused specifically on the type of organization to be formed, as well as governance options (e.g., who elects the board of directors, or will the organization have voting members).
Careful planning also includes drafting provisions providing for indemnification of officers and directors, a conflict of interest policy, and other “best practices” policies.
Those who retain us to create a non-profit organizations and obtain IRS recognition of tax-exempt status get much more than mere documents. They receive a comprehensive consultation to make sure they understand formation and governance options. They will not get that from lawyers, paralegal services, and accountants inexperienced with non-profit organizations. We believe the cookie-cutter approach to forming a tax-exempt organization does not serve our clients well.