Exempt Organizations and Nonprofits

Leonard C. Martin

Our clients are private foundations, public charities, hospitals, colleges and universities, governmental entities and other tax-exempt organizations. We deliver the full range of services for these organizations, whether it is the formation of an entity or providing analysis on partnerships, joint ventures, management contracts and conversion to for-profit status, among others. We organize nonprofit entities, obtain determinations of tax-exempt status, respond to IRS information requests, prepare state and local filings for charitable solicitations and tax exemption, and advise on tax exempt corporate governance. In addition, we assist with intermediate sanctions and private inurement issues, and provide unrelated business income analyses.

We know the complex regulations and legal restrictions that govern tax-exempt organizations, and our clear understanding will guide clients through even the toughest situations. Clients are represented before the Internal Revenue Service as well as state taxing authorities and other governmental authorities. Our ability to leverage the in-depth experience of other practice areas of law assures that our clients are given service on every level, from tax issues to employment benefits and beyond.

Representative Matters

  • Advise several university and college foundations in Mississippi on a wide range of tax exempt organization issues.
  • Assisted a nonprofit client in correcting an erroneous Section 501(c) subsection characterization which, according to the Internal Revenue Service records, was attributed to the client when in fact the client had for years operated under another subsection within Section 501(c).
  • Prepared the organizational documents and applied for federal tax exempt status for schools, hospitals, publicly supported charities, private foundations, private operating foundations, business leagues, social clubs, civic leagues, social welfare organizations and agricultural, horticultural and labor organizations.
  • Represented clients in connection with tax audits and audits in which the Internal Revenue Service challenged the exempt purpose of the organization.
  • Represented exempt organizations with respect to property tax issues, unemployment tax issues and unclaimed property issues.
  • Prepared tax returns for exempt organizations (Form 990s and Form 990 PFs).
  • Drafted policies for exempt organizations such as conflict of interest policies, document retention and destruction policies, whistleblower policies, and gift acceptance policies.
  • Represented clients with issues regarding excess benefit transactions.
  • Represented exempt organization in real estate dispute.
  • Consultation with potential donors regarding structure of gifts to charitable organizations.