Applying for 501(c)(3) Status: Including drafting bylaws, lobbying, and political restrictions

Anita Pelletier | Nixon Peabody

Anita Pelletier serves as counsel in Nixon Peabody’s Nonprofit practice group. She advises nonprofit organizations in matters relating to legal requirements and best practices in connection with governance and operational matters.

Services

Today, she focuses her practice on assisting nonprofit clients to operate as effectively and efficiently as possible.

Nonprofit Corporate Governance and Board Disputes

With the increased level of scrutiny and transparency requirements from the IRS, state charity regulators, and the public, it is more important than ever that nonprofit organizations ensure their governance and operations are legally compliant. She’s helped organizations ranging from the very small to the very large update bylaws and policies to comply with legal requirements and best practices.

Tax Compliance and Audits

Both the IRS and many state charity regulators are using analytics to identify areas of potential noncompliance to start audits and investigations of nonprofit organizations. Many of these are targeted to specific areas, and it is important to have a plan in place to identify what the regulator is looking for and the best way to respond. She’s worked with many organizations to guide them through these audits and investigations. Most recently, she assisted a nonprofit to respond to an IRS inquiry questioning whether the organization’s activities were charitable and an organization to respond to noncompliance allegations by a state charity regulator in connection with the receipt of a charitable bequest.

Reorganizations, Mergers, Dissolutions, and Sale of Assets

The current climate for nonprofits is unprecedented. Efficient and effective operations are more important than ever. Many nonprofits are working to leverage current assets and seek strategic alliances to ensure continued operations to assist the most vulnerable in society. She’s worked with many nonprofits to successfully sell assets and navigate mergers and dissolutions, including working through state charity-approval processes, which have become subject to increased scrutiny. Most recently, her work in this area included assisting nonprofit housing organizations sell or refinance housing projects and advising on the merger and sale of assets by health care and nursing home nonprofit organizations.

Charitable Solicitations and Sales Promotions

She’s assisted numerous charities navigate the various rules regarding charitable solicitations in a market that necessitates the use of social media and electronic communications.

She’s also represented businesses using promotions to develop brand recognition and sales. Last year, they helped a business develop best practices for operating a national sweepstakes and contests.

James E. Tyrrell III | Dickinson Wright PLLC

James Tyrrell is a partner in the Political Law and Nonprofit Practices in Venable’s Washington, DC office, where he focuses on complex political law compliance and campaign finance regulation for a wide range of corporate and political clients. Jim counsels and advises corporations, nonprofit organizations, trade and professional associations, state and national party committees, PACs, super PACs, and candidates on federal and state campaign finance laws, government ethics rules, lobbying disclosure, and pay-to-play laws. Jim regularly represents clients in enforcement actions, investigations, audits, and advisory opinion requests before the Federal Election Commission and state election enforcement agencies. He has significant experience litigating before federal and state courts with respect to issues of election law and campaign finance, constitutional law, congressional and legislative redistricting, and administrative law.

Elizabeth Fernandez | Gonzalez, Shenkman & Buckstein, P.L.

Elizabeth Fernandez is an Associate Attorney at Gonzalez, Shenkman & Buckstein, P.L., whose practice ranges from business and corporate law to estate planning and administration. She received her B.A. in Political Science from Florida International University, and is a Lifetime Member of the FIU Alumni Association. Elizabeth earned her Juris Doctor with honors from St. Thomas University School of Law. While at St. Thomas, she was the president of the St. Thomas University Chapter of the Cuban American Bar Association and briefly served as Executive Vice President of the St. Thomas University Trial Team. Elizabeth received the CALI Book Award for Administrative Law and earned Dean’s List distinctions several times. Prior to joining GSB Law, Elizabeth was the Chair of the Trusts & Estates Practice of a business and commercial law firm in Miami, Florida.

Elizabeth is fluent in Spanish and admitted to practice law in the State of Florida, the U.S. District Courts for the Southern District of Florida and the U.S. Tax Court.

Session I – Applying for 501(c)(3) Status: The Basics | 1:00pm – 2:40pm

1. IRS exemption application process | 1:00pm – 1:20pm
2. Internal Revenue Code Section 501(c)(3) | 1:20pm – 1:40pm
3. Key considerations for preparing a successful application | 1:40pm – 2:00pm

Break | 2:00pm – 2:10pm

4. Overview of state nonprofit corporation and state filings/exemptions | 2:10pm – 2:40pm

Session II – Lobbying and Political Activities for Non-profits | 2:40pm – 3:50pm

1. Federal and state campaign finance requirements | 2:40pm – 2:50pm
2. Contributions | 2:50pm – 3:00pm
3. Independent expenditures | 3:00pm – 3:10pm

Break | 3:10pm – 3:20pm

4. Disclosure and disclaimers | 3:20pm – 3:30pm
5. House and Senate Ethics rules | 3:30pm – 3:40pm
6. Federal tax issues, restrictions, and requirements for 501(c)(3), 501(c)(4), and 501(c)(6) tax-exempt organizations | 3:40pm – 3:50pm

Session III – Drafting Nonprofit Bylaws: Protecting Your Organization | 3:50pm – 5:00pm

1. Various uses for bylaws | 3:50pm – 4:05pm
2. Required and recommended clauses to include in Non-Profit bylaws | 4:05pm – 4:20pm

Break | 4:20pm – 4:30pm

3. Drafting best practices | 4:30pm – 4:45pm
4. How to handle amendments to the bylaws | 4:45pm – 5:00pm