Washington, DC Firm Helps Form Tax-Exempt Associations
Clearing the way for your organization to gain tax-exempt status
The attorneys at Douglas & Boykin PLLC help form religious and other not-for-profit organizations by handling such tasks as drafting the articles of incorporation and bylaws and applying for tax-exempt status. The firm also helps you understand the legal and ethical duties of your board, and advises you on best practices for board members, including avoiding conflicts of interest and establishing financial controls.
Applying for federal tax-exempt status
Properly registered nonprofit organizations may be exempt from federal and state income taxes. The groups are also allowed to receive tax-deductible contributions under Sections 501(c)(3) and 509(a) of the Internal Revenue Code. When applying for federal tax-exempt status, an organization must provide information about its purpose and its planned activities. It also must file a five-year budget.
To maintain tax-exempt status, nonprofits must comply with regulations that affect the way they operate, including restrictions on commercial activities, excessive executive compensation, and political campaign and lobbying activities. The attorneys at Douglas & Boykin help you gain and maintain tax-exempt status by providing guidance on such issues as:
- Articles of incorporation
- Bylaws
- Directors’ duties
- Officers’ duties
- Financial audits
Legal counsel to religious organizations
Religious groups can be tax-exempt 501(c)(3) organizations. To qualify, a church or religious organization must meet the following IRS requirements:
- The organization must be organized and operated exclusively for religious purposes.
- Net earnings may not benefit any private individual or shareholder.
- No substantial part of its activities may include attempting to influence legislation.
- The organization may not intervene in political campaigns.
- The organization’s purposes and activities may not be illegal or violate public policy.
Consult Douglas & Boykin about forming a nonprofit organization
Douglas & Boykin PLLC is experienced in advising nonprofit groups. You can contact the firm at 202-753-0042 or online. Douglas & Boykin serves the District of Columbia metropolitan area, which includes Northern Virginia and Maryland.
