As a young estate planning attorney, I occasionally created private foundations for clients with charitable intentions and a desire to realize estate or income tax savings. While learning about foundations, I developed an interest in charitable organizations and nonprofit governance. Since then – and independent of estate planning – I have helped guide individuals and groups wishing to start charities through the legal process of creating their entities and obtaining recognition of tax-exempt status from the Internal Revenue Service.

The tax rules that apply to charitable organizations differ depending upon whether the charity is a public charity or private foundation. In addition, if a public charity qualifies for exemption under a section of the Tax Code other than 501(c)(3) (for example, a fraternal order or a business league), there may be additional requirements that must be met to qualify for tax exempt status, as well as additional limitations. It is important to understand completely the rules that will govern your charitable organization.

When I create charities or help them seek tax exempt status, I usually discount my rate charged. In select cases, I may continue to advise charities after they have received their tax exemption.

If you are interested in starting a charitable organization, please call, or send a email by clicking here.