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Tax Exempt Organizations

In the United States, our internal revenue laws offer certain entities the opportunity to enjoy general exemption from income taxation and offer an additional subsidy to certain charities by generally allowing donors to deduct contributions.

The process of establishing an exempt organization usually begins with the formation of a non-profit corporation (or other legal entity) to establish a governance structure, create a liability shield for the members or participants, and provide safeguards against impermissible private benefit or inurement (and, in many cases, against the conduct of certain political activities).

It is often necessary or desirable to then apply to the Internal Revenue Service for formal recognition of exempt status (Form 1023 or 1024). Exempt organizations must generally file annual reports (Form 990, 990-EZ or 990-N) and comply with relevant state law registration and solicitation requirements. Although exempt organizations generally exempt from income tax, they must pay unrelated business income tax (UBIT) on certain income generated by regular activities that are not connected with their exempt purpose.

Fortson, Bentley and Griffin’s tax attorneys have helped form, secure, and preserve exempt status for dozens of organizations, including:

  • 501(c)(3) Public Charities: Including churches, hospitals, health insurance providers, schools, booster clubs, land trusts and other organizations
  • Private Foundations
  • Social Welfare Organizations
  • Business Leagues
  • Social Clubs

If you are seeking experienced legal representation regarding a tax-exempt organization, please contact us online or by telephone at 706-548-1151 to speak with one of our experienced tax attorneys.