At Hinkle Law Firm LLC, our attorneys understand the rules and regulations nonprofit organizations must follow in order to maintain their tax-exempt status. Nonprofit organizations that fail to comply with IRS regulations risk loss of their tax-exempt status. Our nonprofit attorneys provide advice and legal counsel to properly establish nonprofit organizations and to navigate the complex tax rules that apply to them during their ongoing operations. Our services include the following:
Formation and Ongoing Operation
Our attorneys can assist clients in forming nonprofit organizations and filling the proper paperwork to receive tax-exempt status. Once nonprofit organizations are formed, it is vital they remain compliant to maintain their tax-exempt status. We advise clients on the preparation and adoption of governance guidelines, amendments to bylaws, conflict-of-interest policies, document retention policies, grant procedures, and best-practices.
Unrelated Business Income
Even if an organization is recognized as tax exempt, it may still be liable for tax on its “unrelated business taxable income.” Unrelated business taxable income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the purpose of an organization’s exemption. Issues related to unrelated business income tax can be complicated, but our team has the knowledge to advise clients regarding whether activities will result in unrelated business income tax.
Our team can advise tax-exempt clients about the permissible scope of their political campaign activities and direct and grassroots lobbying. We can evaluate our nonprofit clients’ activities for legal compliance with political campaigning and lobbying restrictions and help our clients to complete required documentation.
Representation Before IRS and State Tax Agencies
Audits, tax controversies, and litigation at the federal state, and local levels are another area our team can assist our clients. When controversies arise, our attorneys have years of experience representing clients in front of the IRS.
At the heart of nonprofit organizations are their employees. Hinkle Law Firm has extensive knowledge in employment law and our attorneys are available to assist organizations with employment-related issues. One of those issues being executive compensation. Recently the IRS has published a final rule in regard to compensation and benefits paid to executives and what is considered excessive. Our attorneys work with organizations to help draft reasonable compensation packages for executives and other employees to avoid penalties from the IRS. We advise nonprofit organizations on issues such as termination, harassment, or wage and hour laws. We can help clients draft employee handbooks and policies that help them remain compliant while achieving their objectives.
Our employee benefit attorneys have extensive experience with non-profit organization employee benefit plans, including 403(b), 457(b), 457(f) plans and health and welfare benefit plans. See Employee Benefits.