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Practices & Industries

Exempt Organizations and Non-profits

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As trusted advisors to our exempt organization and non-profit clients, we utilize our knowledge and experience with regulations and legal restrictions that govern exempt organizations to guide them through even the toughest and most complex situations.

Why Baker Donelson?


More than 45 attorneys experienced in tax law
Served as counsel in SALT disputes in more than 35 states
More than 25 attorneys with an LL.M. in Taxation

Overview


Key Contacts

Exempt organizations and non-profit organizations must navigate a multitude of legal obstacles: not only complying with complex federal and state laws, rules, and regulations that target exempt organizations and non-profits specifically, but also addressing many of the laws that impact for-profit entities, as well as nuances of governance and operations in compliance with the various governing authorities. As trusted advisors to our exempt organization and non-profit clients, we utilize our knowledge and experience with the regulations and legal restrictions that govern exempt organizations to guide them through even the toughest and most complex situations. In addition, we leverage our in-depth experience in other areas of law to ensure that our exempt and non-profit clients are provided service on every level, not only with tax issues, but also with employment laws and benefits, government contracts, privacy, intellectual property issues, and beyond.

Our clients include public charities, private foundations, hospitals, health care organizations, colleges and universities, scientific research organizations, churches and religious organizations, public and private museums, governmental entities, trade associations, social welfare organizations, political action committees, social clubs, fraternal organizations, real estate title holding corporations, cemetery corporations, and other tax-exempt organizations. We deliver the full range of services for all these organizations, whether it is forming an entity, providing analysis on partnerships, joint ventures, affiliated entities, and supporting organizations, drafting management contracts, or converting to for-profit status, among others. Our services also include obtaining Internal Revenue Service (IRS) determinations of tax-exempt status for our clients, responding to IRS information and audit requests, preparing state and local filings for charitable solicitations and tax exemption, and advising on tax-exempt governance. We also counsel hospitals, health systems, and other tax-exempt health care organizations on governance, executive compensation, regulatory compliance, joint ventures, acquisitions, and other strategic transactions. Clients also rely on us for guidance on intermediate sanctions and private inurement issues, as well as unrelated business income and excise tax analyses.

We represent our clients before the IRS, as well as state taxing authorities and other governmental authorities. In federal and state courts, we handle a wide variety of issues that may impact them.

Results may vary depending on your particular facts and legal circumstances.

  • Prepared and filed tax exemption applications on behalf of Sections 501(c)(3), 501(c)(4), 501(c)(6), and organizations under other provisions of the Internal Revenue Code; drafted governance policies, including conflicts of interest, gift, document retention, and other governance policies; and advised clients on appropriate practices for maintaining tax exemption and ensuring good governance.

  • Represented a non-profit health system in obtaining tax-exempt status for seven integrated delivery system (IDS) medical foundations involving physician-controlled board governance structures, but with sufficient reserve powers in favor of the health system corporate member to maintain exempt status.

  • Represented a large state university system in the restructuring of its educational entities, supporting entities, limited liability companies, and real estate holdings with the goal of minimizing unrelated business income exposure and preserving tax exemption.

  • Represented a large scientific research organization in pursuing cutting-edge science by engaging foremost scientists in astronomy and related fields, participating in collaborations with other scientific organizations, colleges, and universities in their explorations of the universe, and protecting and disseminating the scientific data and research that the organization and its collaborators have generated.

  • Established and advised a foundation for a for-profit corporate client to provide support for the philanthropic efforts of the corporation in the communities in which the corporation operates.

  • Created and advised a charitable organization that promotes interests in STEM programs for youth in the community through hands-on after-school activities and lessons centered around educating youth in the fields of science and technology.

  • Advised a private social club organized under Section 501(c)(7) on governance, membership, use of facilities by members and guests, and the tax implications associated therewith.

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