Hiring A Skilled Florida Non-Profit Lawyer Can Enable Your Nonprofit to Survive And Serve the Common Good
This year, The Florida Association of Nonprofits and Florida Department of State Division of Corporations, reports that 168,590 nonprofit corporations are organized in the State of Florida.
This is a staggering number given that nonprofits are generally thought to be insignificant in number relative to their for-profit counterparts. With the right legal help, many Florida nonprofits can quickly and efficiently meet their mission statements of helping serve the poor, promote religious freedom and tolerance as well as access to healthcare and education.
Familiarizing yourself with the organization including the requirements of having bylaws and internal rulemaking organizations within the nonprofit is necessary to be able to enjoy the benefits of being exempt from most income and sales taxes.
Spend a moment and pay attention to the certificate of formation issues and non-profit disputes arising under Florida corporation law and the Internal Revenue Service (IRS).
What Forms the Bulk of Non-Profit Lawsuits Brought in Fort Lauderdale, Jacksonville, and Tallahassee Florida?
According to Florida Association of Nonprofits and Florida Department of State Division of Corporations, in the US today, non-profits—including public charities and private foundations—aim to improve quality of life for all Florida residents.
Unique to nonprofit organizations in Florida Chapter 617 of Florida Corporations Not for Profit, non-profits promote non-secular values, peace and tolerance, selfless service to marginalized communities, equality, the protection of the environment, among countless others.
For instance, many nonprofit corporations strive to address issues of public concern without needing to have a profit-incentive, including:
- Religious matters and themes.
- Campaigns to teach tolerance.
- Educational programs to promote mutual respect among cultures and socio-economic groups.
In particular, your organization receives special tax treatment as long as you comply with the Florida Nonprofit Organizations Code and observe the corporate formalities of incorporation, such as:
- filing with the Secretary of the State of Florida the address of the corporate office,
- the name of the non-profit,
- the registered agent for service; and
- the nonprofit corporation’s articles of incorporation.
Chapter 617 of Florida Corporations Not for Profit.
Whichever non-profit a general counsel specializing in nonprofit corporate law is called to represent, issues commonly pertain to the nature of the corporation in the eyes of the IRS, usually involving the conveyance of real estate.
Specifically, lawsuits may claim that certain changes in form or actions taken remove the non-profit is nominally listed as such, but whose actual activities cause the Florida tax-exempt organization to lose its exemption privileges. In such cases what is required is a skilled non-profit lawyer to render legal services in civil and tax court to minimize liability for the non-profit, and thereby allow the non-profit to continue to serve the community’s vulnerable.
How to Ensure Tampa, Miami and West Palm Beach, Florida Nonprofit Corporations, Charities or Private Foundations Retain Their Tax-Exempt Status with the IRS
According Florida’s Palm Beach County Property Appraiser, one such perk of a nonprofit structure is having property tax-exempt status. This right to not be taxed applies to “institutions” that can be exempted through institutional exemption, as well as:
- Certain charitable organizations
- Youth development organizations
- Religious organizations
- Non-profit private schools
- Cemeteries
- Veterans’ organizations
According to the well-respected guide for legal aid to the public Nolo.com, a non-profit lawyer would excel at in allowing the non-profit to maintain its “tax-free” status under state law even when your organization takes action inconsistent with its purpose as not making a profit.
Based on a technical distinction between the purpose and source of money, the IRS will tax the non-profit.
There are two categories of taxation for a non-profit:
- Related income of the non-profit
- Unrelated income of the non-profit.
Generally speaking, if there is some logical relationship between the nonprofit’s primary purpose and its activities creating a profit, the corporation will not be subject to federal and state income taxes.
However, a veteran Florida nonprofit lawyer could detect when and how to avoid tax liability in situations when your organization unintentionally enters the business of buying and selling donated goods, which become taxable through income and sales tax.
As a nonprofit executive confronted in managing the day-to-day of your organization, you may simply not be able to dedicate the required resources, attention and focus to artfully resolving how to manage legal risk created when making snap business judgments involving assets, including buying and selling real or personal property.
Common Non-Profit Defenses Helpful in Non-Profit Legal Disputes
According to the reputable Orlando Chisholm Firm, Florida nonprofit lawyers counsel their clients with formation-issues as well as day-today day-to-day governance-issues.
The main practice areas that Florida non-profit lawyers advise their clients on include these legal needs:
- Formation and filing of the proper nonprofit corporation IRS form, and filing required documents.
- Name reservation disputes.
- Donation solicitation disputes.
- Purchase or lease of real estate, or intellectual property.
- Disputes involving corporate law.
- Mergers.
All the more reason a nonprofit’s board of directors requires a skilled advocate who can accurately assess your corporation’s needs, understand the governing IRS tax law that will operate in your favor, and propose targeted solutions mindful of the consequences on the organization as a whole, including its maintaining its tax-exempt status.
Legal Advice: A Florida Non-Profit Lawyer’s Value to Non-Profit Executive, Staff and Others Doing Business with the Non-Profit
With successful Florida nonprofit law firms reportedly charging between $199 to $420 per hour, per Clio.com’s 2021 statistics, you may be wondering about the cost-effectiveness of retaining one.
But, based on the nuances of non-profit corporation law in Florida, IRS tax court decisions, advantages in the way nonprofits are formed through articles of incorporation documents and access to trusted advise before you make any executive decision—this added cost is well worth it.
Trained and mindful of not only non-profit corporate law, but also a wide range of other areas of law, including: business law, tax, family law, estate planning and probate law—Florida nonprofit lawyers representing small, medium and large organizations are able to provide representation effective and affordable considering the value they add to the organization they serve.
Don’t needlessly be exposed to risk and liability for actions that you aren’t responsible for, or else lose out on money to the non-profit’s operating budget, which can handicap your organization and prevent it from serving the public good.
The Importance of Hiring a Skilled Florida Non-Profit Lawyer?
In truth, hiring any attorney would accomplish some goals of a nonprofit; however, that will not prevent a costly mistake from happening when it also true that there are hundreds of business decisions being conducted daily affecting large numbers of people within your nonprofit organization and beyond.
Viewing nonprofit law, government law, banking, tax and probate and estate planning as not separate entirely but intertwined an accomplished and distinguished Florida nonprofit lawyer can work with you together to best promote your organization’s needs.
Many top-rated law firms specialize in these cases, including Tampa-based non-profit firm de la Parte & Gilbert, P.A., among others in the Orlando, Palm Beach and surrounding areas, offer a free initial consultation to help strategize your best course of action during a time of uncertainty and pressure to make executive decisions affecting the entire company.
For such a Florida law office competent in Florida non-profit law, a specialist will ask you, the client, questions to maximize the value of your case or minimize liability in exploring your legal options—whether you are a relatively inexperienced owner of a non-profit, or larger nonprofit corporation with greater experience in making decisions affecting large numbers of employees. Such representation often necessitates employing novel legal arguments and arguments for fundamentally changing the law to benefit you, the client.
In any case, you should be prepared to create a narrative of facts detailing everything that you remembered before, during and after the incident leading up to the dispute, including keeping meticulous records of expenses made during the litigation, or in the case of the responsible merchant, the costs to defend.
As a client whether for the organization or another party to a dispute, it is also imperative to share any business malpractice or personal insurance company policy maintained and investigate other potential actors responsible for the wrongful act. Also important is it that your attorney test the strength and validity of the rival claims made against the non-profit.
Forming an Attorney-Client Relationship: Call a Non-Profit Lawyer Today to Discuss Your Case and Odds of Victory for the Non-Profit
Generally speaking, unless a disclaimer exists, the attorney-client relationship forms upon consultation when you consider hiring the attorney. Once formed, this relationship helps prepare the client to bring a winning case to receive compensation where there is clearly established liability and avoid tax liability for nonprofit transactions that are not intended by the tax code to be included as taxable.
More helpful in your search through the Florida Bar’s local bar association directories for an Orlando, Palm Beach or Miami-based non-profit lawyer, Lawsuit.org specialty is pinpointing the most highly-rated, highly-ranked Florida nonprofit referral who offers a free consultation to obtain the just results that you, the spiritual leader, educator or charity needs.