Starting a Nonprofit 501(c)(3)

Starting a Section 501(c)(3) nonprofit can be quite an adventure! What legal steps are required? While the details may vary widely, the concrete steps may be best summarized as follows: (1) form a nonprofit corporation, consistent with Section 501(c)(3) requirements; (2) apply to the IRS for recognition of tax-exempt status; and (3) understand and comply with applicable legal requirements for both state nonprofit status and federal tax-exempt classification. Vision is essential, and so is taking the right steps with the end goal in mind. The following guidance sets forth a roadmap for taking these steps, including numerous references to other Wagenmaker & Oberly blog articles providing additional guidance. Note that these steps apply equally well for other types of tax-exempt nonprofits, such as social clubs and trade associations, except with respect to tax deductibility of charitable contributions and other privileges accorded only to Section 501(c)(3) organizations.

Espinoza: Upholding Taxpayer Support for Religious and Non-Religious Schools Alike

Our country has long grappled with whether and to what extent any government benefits or other favor may be accorded to private schools, especially religious grade schools. This summer, the U.S. Supreme Court issued another landmark decision in Espinoza v. Montana Department of Revenue, validating a state school tax credit program that benefits religious and non-religious schools alike by striking down the Montana State Constitution’s prohibition on any state aid to a school controlled by a “church, sect, or denomination.”

President Trump's COVID-19 Executive Orders on Unemployment and Payroll Taxes: More Questions than Answers

To what extent may unemployment benefits be enhanced and payroll taxes be deferred, as a result of President Trump’s recently issued Executive Orders? Issued on August 8, 2020, the Orders and related Memoranda to Cabinet and Executive Agency leaders seek to extend COVID-19 relief measures to individuals and businesses by reviving prior Congressionally authorized relief measures under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Two of the Orders provide for partial continuation of enhanced unemployment benefits ($400 weekly) and suspended payroll tax collection. This executive branch action, however, leaves much to government agency heads in terms of implementation. Additionally, it will likely require some congressional agreement in terms of financial appropriations, as well as significant collaboration from state governments, to yield any meaningful results.