Michigan Nonprofit Lawyers
Our Michigan nonprofit lawyers provide a full spectrum of services to meet the unique needs of nonprofit clients. From counseling a group of individuals on forming a new nonprofit organization, to assisting well-established organizations with implementation and maintenance of corporate structure in the areas of non-profit governance, business and employment law.
In addition to forming new organizations on paper, we provide in-depth assistance and guidance to board members of non-profit organizations so that they understand their numerous duties and obligations under both state and federal law. We are able to draw upon our real world experience to assist our clients in complying with the numerous regulations governing their organization, and avoid common mistakes that are easy to make, yet costly to rectify.
Nonprofit Legal Counsel
Nonprofits can be organizations that serve the public at-large or more specifically provide benefit exclusively to their members. Thus, state statutory provisions provide distinct requirements for the different types of nonprofit organizations. As many states have adopted all or at least parts of the 1987 Revised Nonprofit Corporation Act, statutory law by way of the Revised Act provides nonprofit classification for mutual benefit and public benefit organizations.
More specifically regarding the tax-exempt status given to nonprofit organizations, the Internal Revenue Code § 501(c) provides the different categories of nonprofits based on their working purpose. For example, charitable organizations – having a purpose in providing some sort of charity – are one of eight categorized exempt purposes under I.R.C. § 501(c)(3).
Nonetheless, one of the underlying features of a nonprofit is the abstinence of distributing income to officers, directors or members. Much of the statutory law on nonprofit organizations defines a nonprofit to be one that has “no part of the [its] income [be] distributable to a member, director, or officer of the corporation.” There is a general misconception when it comes to nonprofit organizations in regards to this whole notion of “profit.”
It’s not that the organization cannot make a profit per se. Rather, distributing profits is disallowed to officers, directors or members.
Nonprofit Legal Services
- Advising Directors on Nonprofit Process
- Nonprofit incorporation/formation with the State government
- 501(c)3 Status Procurement with the IRS (Federal government)
- Assisting Directors in Drafting Organization’s Purpose/Mission Statement for Legal Purposes
- Advising on Best Practices for Directors’ Appointment
- Application for State Tax Exemption
- Drafting Bylaws for Organization’s Internal Governance
- Providing Meeting Minutes for Initial Board of Directors Meeting
- Strategic Planning and Development
- Nonprofit Board Management Training
- Organizational Advisement