Practice Areas

Non Profit Law

Neither a nonprofit corporation nor an unincorporated nonprofit association is automatically exempt from federal or state taxes.

All charitable nonprofits recognized as tax-exempt under section 501(c)(3) of the Internal Revenue Code, including churches and religious organizations, must abide by certain rules. In exchange for the favored status of being exempt from many taxes, charitable nonprofits promise: 

• Not to be organized or operate for the benefit of any private interests;
• Not to devote a substantial part of its activities to attempting to influence legislation;
• Not to participate or intervene in any political campaign on behalf of, or in opposition to, any candidate for public office; and
• Not to be organized for or conduct activities that are illegal or violate fundamental public policies.  

Loss of tax-exempt status could have disastrous consequences for your charitable nonprofit. It is helpful for every nonprofit leader, whether board or staff, to be familiar with the importance of tax-exempt status, and situations that put a charitable nonprofit’s tax-exemption in jeopardy.