Choice-of-Entity and Tax Considerations for Nonprofits

Nonprofit and charitable organizations must approach entity selection and formation decisions in an informed and careful manner. Not all nonprofits are charitable, and even when they are charitable, tax-exempt status is not guaranteed. Attorneys advising nonprofit organizations must engage clients in a multilayered analysis of their mission, their operations, and the organizational distinctions of nonprofits to align their needs and formation decisions. Once done, clients can then be counseled on the advantages and disadvantages of the four major state-based entity options as each has subtle tradeoffs. Only then can parties move on to discussing whether federal tax exemption is achievable and maintainable. Taught by Dechert attorney Michael Lehmann, this video webcast will analyze and discuss these topics and more: - Framework of major choice of entity considerations for nonprofit and charitable organizations: Corporations, LLCs and trusts - Private foundations v. public charities: Tradeoffs, costs, and compliance - Restrictions on the activities and investments of each type of entity, including joint ventures with profit-making organizations - Considerations involving joint ventures between for-profit and non-profit entities - Practical process of obtaining tax-exempt status: Eligibility, timelines, and costs - Counseling clients about ongoing compliance reporting