Publications

Five Tax Traps for Business Lawyers Advising Nonprofit Clients

6/23/2014 Articles

Many business lawyers are often called upon to advise nonprofit organizations, such as their kids’ schools and sports leagues, soup kitchens and homeless shelters, museums and cultural institutions, community foundations, and the occasional private foundation set up by a good client. While much of the legal work for established nonprofits is the same as for any other business clients, the tax exempt status of these entities brings with it a host of income, property, and sales tax rules that are not necessarily obvious. This article highlights the most likely tax issues to arise for nonprofit organizations, typically corporations, that are described in Internal Revenue Code Section 501(c)(3). Similar traps exist for other common kinds of nonprofits – for example “social welfare” organizations, trade associations, and social clubs – but other special rules that apply to those types of entities are beyond the scope of this article.

Click here to read the full article published in the June 2014 issue of the American Bar Association's Business Law Today.

Resources

Firm Highlights

Publication

California Regulation of Charitable Fundraising Platforms: Part I - Definitions

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . In episode 76, I introduce the provisions of California's Charitable Fundraising Platforms law (Gov. Code, § 12599.9). These rules are relevant to all...

Read More
Publication

Employment Law Update for Nonprofits With Holly Sutton

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . Charities, foundations, and their founders often request help addressing employment practices and compliance questions. In this episode, host Cynthia Rowland is joined by Holly...

Read More
Publication

Nonprofit Quick Tip: State Filings in Florida and Louisiana

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . This is the ninth in a series of “Quick Tip” episodes focusing on the details of state registration of nonprofit corporations. In previous...

Read More
Publication

Nonprofit Quick Tip: State Filings in North Carolina and South Carolina

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . Episode 75 is the tenth in a series of Quick Tip episodes focusing on the details of state registration of nonprofit corporations. With...

Read More
Publication

California Regulation of Charitable Fundraising Platforms Part 2 - Reporting Due Diligence, Recordkeeping, and Disclosure Rules

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . This episode covers the provisions of California’s Charitable Fundraising Platforms law (Gov. Code, § 12599.9) relevant to all covered charitable fundraisers and fundraising...

Read More
Publication

Nonprofit Quick Tip: State Filings in Rhode Island and New Hampshire

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . This is the eighth in a series of “Quick Tip” episodes focusing on the details of state registration of nonprofit corporations. With the help...

Read More
Publication

Corporate Transparency Act: A Guide on Beneficial Ownership for Nonprofit Executives

The Corporate Transparency Act, enacted as part of the National Defense Authorization Act for Fiscal Year 2021, represents a significant shift in regulatory requirements for entities across the United States. This act, set to...

Read More
Publication

Nonprofit Basics: Unpacking Prudent Investments, PRIs and MRIs

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . Episode 73 discusses frequently used terms in the nonprofit world pertaining to investment activities. Public charity and private foundation directors and officers need...

Read More
Publication

Nonprofit Basics: Scholarship Grant Program IRS Approval Requirements

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . Today’s episode focuses on IRC Section 4945(g), which provides an exception for grants to individuals so that the penalty taxes for such grants...

Read More
Publication

Charitable Planning With Guest Stephanie Hood: Navigating Complex Rules and Traps for the Unwary

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . This week, I am delighted to have Stephanie Hood return as my guest. Stephanie is my colleague at Farella Braun + Martel and...

Read More