The Advantages and Difficulties with Nonprofit Public Charities:
Tax exempt status under 501(c)3 of the Internal Revenue Code gives nonprofit charities the ability to better allocate their assets and resources so they can more effectively achieve their mission. Not only does a recognized nonprofit public benefit corporation find themselves free from many tax burdens, but such an organization also has the ability to provide unique incentives to donors assuring future revenue.
Receiving or maintaining this tax exempt status as a nonprofit charity, however, is a complicated matter. It involves an application to state and federal agencies, each of which requires multiple forms and documentation. For example, an application for federal tax exempt status is required to include information about the organization such as its proposed activities, the bylaws that govern the activities of the organization, and a three-year budget. At the San Francisco based Bay Area Law Firm of Jones & Devoy we assist new organizations in the incorporation and tax-exemption processes to ensure that they establish a legally correct and effective structure from the outset, putting an organization into a strong position to carry out their mission.
Once formed a nonprofit must govern and conduct itself under a very particular set of guidelines. Failure to adhere to these guidelines can result in either personal liability of the directors or a loss of tax exempt status. However, well worded governence policies and procedures can avoid the most common pitfalls that nonprofits find themselves caught in as well as create a structure to deal with unique problems as they arise.
How Jones & Devoy Can Help You Form and Manage a Nonprofit:
If you are considering forming a nonprofit charity the Bay Area Attorneys at Jones & Devoy can assist you in the following manner:
- Formation of nonprofit corporations and charitable trusts;
- Preparation and review of governance documents such as: nonprofit bylaws or governance policies;.
- Consultation on the legal duties of boards and individual directors, including fiduciary obligations;
- Advice on best practices for board members, including conflicts of interest and financial controls.
Our office always provides a free initial consultation to individuals contemplating forming a charity. Contact our San Francisco Office to learn how we help you carry out your mission.