Tax Exempt Organizations and Nonprofits

Overview

Advancing your mission

Carmody has extensive experience in the exempt organization arena. We represent public charities, community foundations, private foundations, and other tax-exempt organizations. We provide advice on the formation of tax-exempt organizations, apply for recognition of tax-exempt status, and advise on operational and governance issues. After formation, we typically continue to serve as legal advisors to these organizations and assist with fulfillment of their mission and objectives, as well as with compliance matters and preservation of the organization’s tax-exempt status.

Our tax-exempt clients regularly call upon us for advice and counsel regarding a variety of business transactions and relationships, as well as for ongoing advice regarding governance and operational issues. As part of our practice, we are involved in developing bylaws and corporate governance policies and advising Boards with respect to their fiduciary duties as Directors and Officers, and the adopted compliance and improvement policies. We have also undertaken Board survey and corporate secretary matters. We can help you sort through the issues around your restricted funds and endowments, such as Uniform Prudent Management of Institutional Funds Act (UPMIFA).  Our clients also look to us for help on Unrelated Business Income Tax Issues (UBIT), permissible director transactions, intermediate sanctions, and reinstatement of revoked tax-exempt status.

Attorneys in our Tax-Exempt and Nonprofit Organizations group have recently been involved in the following matters:

  • Leading a tax-exempt acute care hospital and its affiliates through a sale to a for profit purchaser and undertaking the related statutory conversion process
  • Leading tax-exempt bond financings through CHEFA for schools, hospitals and other “qualified organizations”, such as child care centers
  • Providing guidance on conflict of interest issues, private inurement, executive compensation, unrelated business income tax, and intermediate sanctions
  • Representing charitable organizations that provide global food, medicine, and health services on operational, corporate governance, and tax-exempt issues
  • Leading cy pres actions for a school and a hospital after their operations were no longer tax exempt
  • Developing and advising social clubs and trade associations under Sections 501(c)(4) and (6)
  • Converting a for profit cemetery to a tax exempt 501(c)(13) status
  • Selling a nonprofit school (grades K-12) to a for profit buyer and overseeing the post-closing management of charitable assets
  • Merging one private school into another private school
  • Counseling a private college in connection with its disaffiliation from a related university
  • Closing and unwinding of a school for children on the autism spectrum

Our tax-exempt clients include the following types of organizations:

  • Affordable, Low Income, Elderly, and Transitional Housing
  • Agricultural Supporting Organizations
  • Behavioral Health Services
  • Colleges and Universities, as well as K-12 Education
  • Community Action Agencies with Programs Such as Alternative Incarceration, Energy Assistance, Behavioral Health, Childcare, Head Start, Economic Development
  • Faith Based Radio and Television Stations
  • Federally Qualified Health Clinics
  • Fish Farms
  • Greenways
  • Homeless Shelters
  • Hospitals
  • International Camps for Children with Serious Illnesses
  • International Humanitarian Organizations
  • Land Bank Authorities
  • Libraries
  • Municipal Housing Authorities
  • Museums
  • Police Activity Leagues
  • Political Action Organizations
  • Private Clubs
  • Religious Sites
  • Urban Neighborhood Farms

Individual Clients

Industries

Cannabis Industry Practice Group

learn more

Healthcare

learn more

Financial Institutions

learn more

Energy

learn more

Education

learn more