Non-Profit Organization Attorneys
Our non-profit attorneys will help you through the legal process so you can focus on your mission.
A non-profit corporation is an organization that acquires funds through charitable activities that generally help the public at large in some beneficial way.
One of the most common types of non-profit organizations is the public benefit corporation.
If the purpose of the organization complies with certain legal requirements, state and federal entities like the Internal Revenue Service can confer upon it a federal tax exemption under IRC 501(c)(3) so it may acquire funds and not pay tax for it. But to do so, you must have the right documents prepared at the non-profit’s inception to avoid any issues with the IRS and other governmental authorities, such as the Attorney General’s Office and Franchise Tax Board.
Endeavor Law routinely assists non-profit organizations from their inception by preparing all requisite filings, corporate governance documents, resolutions, and more.
Non-Profit Formation & Entity Selection
One of the main differences between a for-profit organization and a non-profit public benefit organization is the fact that the latter can acquire funds from engaging in charitable activity and not have to pay taxes. This can happen so long as the organization engages in charitable activities as defined by the Internal Revenue Code 501(c)(3).
IRC 501(c)(3) Organization
In order to be recognized by the IRS as a 501(c)(3) organization, the entity must properly complete and submit Form 1023 through the IRS website and provide specific organizational documents. But once acquired, the non-profit’s responsibilities do not end there.
Non-profit entities are monitored by both federal and state agencies. To preserve their 501(c)(3) status, they must follow their respective corporate formalities and report annually to each of these agencies on their charitable activities.
Although Endeavor law does not offer tax advice, we can counsel your entity in maintaining its legal compliance across multiple agencies.
Beyond compliance, strong governance is essential for a successful non-profit. Officers, directors, and members must align on policies and best practices to ensure the organization operates effectively. We facilitate key discussions to help memorialize governance structures that reflect the organization’s mission and legal responsibilities. By taking a proactive approach, non-profits can reduce the risk of compliance issues and focus on achieving their charitable objectives.
Our firm provides legal guidance at every stage, from formation to governance, helping organizations remain in good standing and legally protected.
Additional Non-Profit Organization Services
- Advising on non-profit entity selection
- Counseling regarding charitable activities
- Acquisition of Federal Tax Identification Number
- Preparation and filing of State and Federal tax exemption applications
- Preparation of various agreements to facilitate charitable activities
- Guidance for compliance with various state and federal authorities, including the California Attorney General’s Office
Need legal guidance for your non-profit organization? Our business attorneys in Glendale, CA are here to help. Contact us today for expert legal counsel.
Why Choose Us?
As business attorneys who have litigated a variety of cases in the corporate and business setting, you can rest assured that we are prepared to identify obvious and subtle pitfalls for your non-profit organization.
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Whether you're looking to set up a for-profit or non-profit organization, we're here to help.
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Frequently Asked Questions About Non-Profits
Do I only need to apply to the IRS to obtain tax-exempt status?
Yes and no.
The IRS is the main entity from which your non-profit must request tax-exempt status. But your entity also needs to apply to the California Franchise Tax Board for tax-exempt status.
However, if you receive a letter from the IRS confirming that your entity is recognized under IRC 501(c)(3), then that is all the FTB requests that accompany their application for tax-exempt status.
Does forming a non-profit organization differ from a for-profit corporation?
Not really. A non-profit organization generally requires the same type of documents as a for-profit organization.
The difference lies in the content of those documents, which are crucial for the non-profit’s existence and acquisition of tax-exempt status. Once those documents are prepared by a competent professional, they must be disclosed to any other relevant state or federal body.
For example, in California, non-profit organizations must also register and file their organization with the Attorney General’s Office since they oversee charitable activities in the state.
Can my non-profit organization lose its tax-exempt status?
Yes, it can. To maintain its 501(c)(3) status, a non-profit organization must report its activities to the relevant state and federal authorities.
For example, the IRS requires that federally tax-exempt organizations complete and file Form 990 or Form 990-EZ (assuming your organization collects more than $50,000 but less than $200,000 that year). To do this, speak with a professional tax preparer or tax professional with experience filing for non-profit organizations.
How long does it take to attain federal tax-exempt status from the IRS?
Assuming you completed and filed Form 1023 with the IRS and provided all required supplementary documents, it could take up to a year to process the application.
Of course, this can be dependent on the complexity of the non-profit’s operations, but it is also affected by the IRS’ own backlog.