Is creating a non-profit a DIY project?
The decision to establish a 501(c)(3) nonprofit organization is a significant step towards making a positive impact and helping others. But it’s not just about doing good – there’s a lot of legal stuff you need to get right. Here’s why having a lawyer on your team is so important when you’re starting a nonprofit.
Legal Compliance Assurance:
The legal framework surrounding nonprofit organizations is complex, encompassing federal, state, and local regulations. Attorneys specializing in nonprofit law possess the knowledge and experience to ensure that your organization complies with all applicable laws and regulations. From drafting articles of incorporation to filing for tax-exempt status with the IRS, an attorney guides you through each step, minimizing the risk of oversights that could jeopardize your nonprofit’s legal standing.
Strategic Guidance:
Crafting a mission statement, structuring governance policies, and establishing operational procedures are important aspects of nonprofit formation. The right attorneys can provide strategic guidance in navigating these decisions, helping you articulate a clear and compelling mission, devise governance structures that promote transparency and accountability, and develop policies that align with best practices in the nonprofit sector.
IRS Compliance and Tax Benefits:
Achieving tax-exempt status under section 501(c)(3) of the Internal Revenue Code is a cornerstone of nonprofit status. However, the application process can be intricate and time-consuming. Attorneys proficient in nonprofit tax law streamline the process by preparing and submitting the necessary documentation, navigating IRS inquiries, and advocating for your organization’s tax-exempt status. Moreover, they ensure ongoing compliance with IRS regulations, enabling your nonprofit to maximize its tax benefits and focus resources on its mission-driven initiatives
Risk Mitigation and Liability Protection:
Nonprofit organizations are not immune to legal risks and liabilities. From contractual agreements to employment matters and intellectual property issues, various legal considerations demand careful attention.Attorneys help identify potential risks, develop strategies to mitigate liabilities, and implement safeguards to protect your organization’s interests. By proactively addressing legal challenges, an attorney will help safeguard your nonprofit’s reputation and sustainability.
Stakeholder Confidence and Credibility:
The involvement of legal professionals in the formation and governance of a nonprofit signals a commitment to integrity, transparency, and ethical conduct. This instills confidence among stakeholders, including donors, volunteers, and beneficiaries, enhancing your organization’s trust-based relationships. Attorney-led compliance efforts demonstrate a dedication to upholding legal standards and ethical principles, further bolstering your nonprofit’s reputation in the community and helping others feel good and comfortable about supporting your cause.
So, if you are thinking about starting a non-profit, finding the right attorney is not merely a prudent choice but a foundational investment in the organization’s long-term success and sustainability. They can help you follow the rules, make smart choices, get tax benefits, stay safe, and build trust. With their help, your nonprofit can do more good in the world!
By Ben King, Elder Law Attorney & Co-Publisher of Texarkana Parent Magazine
