How a New York Non-Profit Lawyer Can Provide Effective Advocacy Enabling Non-Profits to Survive to Serve the Common Good
In 2022, according to City University of New York at Baruch College, there is a reported 46,214 nonprofit corporations organized in the city alone—most dedicated to the pro-bono objectives of arts and culture, education and health and human services charities.
Not only is nonprofit law organized in such a way to foster growth in the Big Apple, but with the right legal help, nonprofits can quickly and efficiently meet their objectives of providing for the relief of poverty, the advancement of religion and promotion of access to healthcare—in contrast to their rival for-profit counterparts.
Knowing how to form a non-profit organization, partnership or subsidiary, the bylaws and regulations associated with such common non-profit forms—is imperative if one is seeking to relocate a non-profit to New York, or create one from scratch.
It is worthwhile to learn more about the various kinds of certificate of formation issues and non-profit disputes that arise in New York under corporation law and involving the Internal Revenue Service (IRS), requires spending a few minutes to read further below.
What Forms the Bulk of Non-Profit Lawsuits Are Brought in NYC, New Jersey?
According City University of New York at Baruch College, in the US today, non-profits—including public charities and private foundations—importantly improve quality of life for residents of NYC.
As opposed to traditional profit organizations organized under New York Business Corporation laws designed to profit, often at the expense of the common good, non-profits can promote non-secular values, peace and tolerance, selfless service to marginalized communities, and needed advocacy for equality for the protection of the environment, among several other pro bono objectives.
For instance, many non-profits can exist to address issues that for-profit corporations would not address, especially those concerning matters that have no incentive to do so due to there being no profit margin involved:
- Religious matters and themes.
- Campaigns to teach tolerance.
- Educational programs to promote mutual respect among cultures and socio-economic groups.
In theory, just about any person, who creates a non-profit can achieve these same benevolent ends so long as the right procedures are followed, and organization requirements are met, making them extremely popular as outlets for freedom of expression.
In particular, New York’ Business Corporations Code provides a framework that encourages the creation and continuation of nonprofits that follow formalities of incorporation, governance and registration formalities such as the corporate headquarters. New York Non-profit laws
Notably, conveyances of real estate are the subject of close monitoring by the IRS. A skilled New York City nonprofit lawyer or law firm will offer helpful tips and strategies for allowing a nonprofit to engage in its regular course of business without losing its tax-exempt status.
How to Ensure Brooklyn Nonprofit Corporations, Charities And Private Foundations In New York Retain Status with the IRS as Tax-Exempt
According to New York State’s Department of Finance, perks for a non-profit’s organization around a pro bono principle rather than profit include having property tax-exempt status. This right to not be taxed applies to properties that:
- are used for religious services,
- are residential and owned by the religious organization to house the officiating clergy,
- are residential and used as a school dormitory or hospital staff housing
- have classrooms for pre-school or higher levels of education,
- provide hospital services or skilled nursing care,
- have offices for charitable uses, including philanthropic or artistic, or
- are used for mental or moral improvement, such as youth athletics.
According to renown legal directory Nolo.com, when a non-profit becomes profitable, there are new issues that a non-profit lawyer would excel at in allowing the non-profit to maintain its “tax-free” status.
Based on a technical distinction between the purpose and source of money, the IRS will tax the non-profit. The first category is related income of the non-profit. And the second is unrelated income of the non-profit.
Generally speaking, if the non-profit earns income as a result of its activities in managing the non-profit and for the purpose of the non-profit, the corporation will not be subject to federal and state taxes. However, based on several legal factors, there could be tax liability created even if the board of directors of the non-profit did not or does not intend its activities to be taxed. Typically, a non-profit fundraising for the profit may unintentionally find itself in the business of buying and selling donated goods, which become taxable.
Common Non-Profit Defenses Helpful in Non-Profit Legal Disputes
According to the centrally located NYC firm of Cohen Schneider Law, Pillinger, Miller & Tarallo, LLP, non-profits are often desperately needing general counsel upon formation and organization after incorporated as well as day-to-day governance.
The main practice areas that New York non-profit organization lawyers give legal assistance advising their clients on 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.
Legal Advice: A New York Non-Profit Lawyer’s Value to Non-Profit Executive, Staff and Others Doing Business with the Not-For-Profit Corporation
As many lawyers in New York have valuable services to offer at high prices, there are some concerns likely how much a non-profit lawyer is worth as your personal advocate.
Pricleless are the benefits of having a New York City nonprofit attorney advise you on every important decision to avoid unnecessary liability and better organize the nonprofit to serve its benevolent purposes. Therefore, the $122 to $485 per hour rate, based on Clio.com’s 2021 statistics, of nonprofit lawyers is justified by this advantage alone.
By harnessing years of experience in the field of nonprofit law, knowledgeable about the various overlapping fields of law of business, tax and probate, a New York City nonprofit attorney will give you advantage compared to an ordinary member of the public.
The Importance of Hiring a Skilled Queens Non-Profit Lawyer?
Due there being hundreds of business decisions being conducted daily, dealing with the tax-exempt organizations’ assets, employees and mission to serve the public, it is important to have a skilled lawyer who can distinguish him or herself from others in the field.
A skilled and talented New York City nonprofit lawyer will be intimately familiar with the most recent decisions in non-profit law, government, banking, tax, and probate law—seeing them as intertwined and working together to positively affect their client’s needs.
Many top-rated law firms specialize in these cases, including New York City-based non-profit organization NYLPI, among others in the city, upstate and surrounding areas, offer a free initial consultation to help strategize your best course of action during a time of uncertainty and “rush to close.”
Forming an Attorney-Client Relationship: Call a Houston Non-Profit Lawyer Today to Discuss Your Case and Odds of Victory for the Non-Profit.
Whether you are a pursuing or defending against a non-profit claim, having the right attorney on your side can navigate the vast and ever-changing landscape of non-profit law, mandatory tax reporting and ever evolving case precedent. 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.
Whether you are looking for a New York City-based, New York State or surrounding city non-profit lawyer, Lawsuit.org will help you pinpoint the right one by offering a free consultation to obtain the just results that a spiritual leader or educator needs.