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An 800 number connects you to nationally recognized practice leaders who will speak on important issues and emerging trends in the law. You can also pose your own questions to the speakers. Written materials and other details are emailed in advance to pre-registrants.
1 CLE hour
First Run Broadcast: November 18, 2015
Live Replay: August 19, 2016
1:00 p.m. E.T. (60 minutes)
Counseling a client about choice of entity for a nonprofit or charitable enterprise is a multilayered process. First, clients need to understand that not all nonprofits are charities. They may be mutual benefit entities like credit unions. Even if the enterprise is nonprofit and charitable in nature that does not necessarily mean the enterprise is tax (or even can be) tax exempt. Once these distinctions are made, attorneys need to counsel clients about the subtle advantages and disadvantages of four major types of entities, all formed under state law. Then there is the distinct issue of how that entity is classified for federal tax purposes. – a public charity, a private foundation of one type or another, a donor-advised fund or a supporting organization. Each comes with its own subtle trade-offs.
• Choice of entity considerations for nonprofits enterprise
• Understanding the differences among nonprofit, charitable and tax exempt organizations
• Management, tax, and other trade-offs among corporations, unincorporated associations, LLCs, and LPs for nonprofits
• Review of benefits and drawbacks of private foundations v. public charities v. donor-advised funds v. supporting organizations
• Restrictions on the activities and investments of each type of entity, including joint ventures with profit-making organizations
• Real world guide to obtaining tax exempt status from the IRS
• Practical considerations for the donees and donors in choice of entity – source of donated funds, donor control, distributions and other considerations
• Growing popularity of not choosing an entity – using a single member LLC or utilizing a long-dormant entity
Michele A. W. McKinnon is a partner in the Richmond, Virginia office of McGuireWoods, LLP, where she an extensive tax-exempt organization and charitable giving practice. She has more than 30 years’ experience representing public charities, major colleges and universities, supporting organizations, large private foundations, and charitable trusts. She is a Fellow in the American College of Trust and Estate Counsel and formerly served as its Virginia State Chair. Ms. McKinnon received her B.A. from the University of Virginia, her J.D., magna cum laude, from the University of Richmond School of Law, and her L.L.M. in taxation from the College of William & Mary Marshall-Wythe School of Law.
Michael Lehmann is a partner in the New York office of Dechert, LLP, where he specializes in tax issues related to non-profits and in the tax treatment of cross-border transactions. He advises hospitals and other health care providers, research organizations, low-income housing developers, trade associations, private foundations and arts organizations. He advises clients on obtaining and maintaining tax-exempt status, executive compensation, reorganizations and joint ventures, acquisitions, and unrelated business income planning. Mr. Lehmann received his A.B., magna cum laude, from Brown University, his J.D. from Columbia Law School, and his LL.M. from New York University School of Law.