Blog

W&O associate attorney Meaghan Falkanger co-presents on political activity dos and don'ts for nonprofits.

A September 30, 2025 federal district court ruling marks another stop along Freedom Path’s extensive journey toward seeking approval of its tax-exempt status as a nonprofit social welfare organization under Section 501(c)(4) of the Internal Revenue C

Does your nonprofit own real estate? If so, is the property exempt from real estate taxes? Many Section 501(c)(3) organizations qualify for this valuable state tax benefit, which can save thousands of dollars annually depending on applicable tax rate

The Board of Directors lies at the heart of nonprofit governance. If the Board’s composition is unclear, the organization, its mission, and its stakeholders may be at risk. Who is on the Board, and why is its composition so vital?

W&O Attorneys Sally Wagenmaker, Matthew Brown, and Paul Winters are speaking on nonprofit topics at the October 2025 Christian Legal Society National Conference.

The ministerial exception applies to ministers. Yes, but what is a “minister” – specifically within the employment law context?

AI automatic note takers may expose organizations to significant legal risk and create unintended challenges. This article addresses ATS use by nonprofits, evaluates related risks, and offers recommendations to mitigate these risks.

Wagenmaker & Oberly is pleased to share a guest blog article from CapinCrouse, a full-service nonprofit accounting firm, which explains increasingly present external fraud threats to nonprofits.

The Form 990-N is an electronic form that can be completed quickly by eligible tax-exempt organizations in lieu of the more extensive Form 990 annual information returns.

How do ministerial exemptions apply to nonprofit employment? Three legally distinct “ministerial exemptions” exist related to housing, unlawful discrimination claims, and wage-related exclusions.

Effective records management not only strengthens nonprofit operations—it also builds trust with regulators, donors, and the public.

Do nonprofits holding medical information fall under HIPAA coverage? Maybe yes, maybe no, but nonprofits must be careful, especially those nonprofits that provide medical services to patients or otherwise hold medical information.

How much should nonprofit founders be compensated? Founders often receive only modest compensation in order to advance the organization’s mission, especially in its early years. What employment-related considerations present long term?

The Illinois Whistleblower Act, as recently amended, provides enhanced employee protections to those who report wrongdoing at their workplace. What do nonprofits need to know?

How can nonbinding agreements help nonprofits in contract negotiations? Should nonprofits use LOIs, term sheets, or MOUs?

Several new state data privacy laws take effect this year that impact nonprofits. What do nonprofit leaders need to know about staying legally compliant? Learn more about specific state laws and key recommended measures.

W&O Partner Jillian Nelson is speaking at The Church Network’s 2025 Human Resources Bootcamp hosted in Greenville, Colombia, and Charleston, South Carolina from March 25-27.

When it comes to nonprofit programs involving children, worker screening is crucial. Both paid staff and volunteers should be screened to improve safety and reduce risk.

How should Section 501(c)(3) nonprofits acknowledge donors’ charitable contributions? A thank you note or small gift is certainly a kind gesture of gratitude, but understanding a donor’s tax reporting requirements may best demonstrate care.

W&O partner attorney Sally Wagenmaker will present nonprofit ministry workshops on March 8, 2025, at the 2025 annual Church Ministries Conference (“CMC”), in Grand Rapids, Michigan.

How can nonprofit leaders best comply with legal parameters for using artificial intelligence as part of their operations?

Is your nonprofit legally compliant? A legal check-up can help through corporate governance, tax, risk management, and employment legal considerations.

On December 23, 2024, the Fifth Circuit Court of Appeals halted the trial court’s injunction of the Corporate Transparency Act. For now, BOI reporting thus remains in place.

Must employers disclose compensation details during the hiring process? Effective January 2025, Illinois' Equal Pay Act amendments warrant certain disclosures.

For nonprofits grappling with the mandated salary threshold hike – relief is here! On November 15, 2024, a Texas federal judge issued a sweeping decision restoring the pre-July 1, 2024, $684 weekly salary threshold amount.

When and how should nonprofit leaders provide personal security for employees? May personal security expenses qualify as a non-taxable fringe benefit treatment?

Can a nonprofit limit its leaders’ individual liability? Should it? Learn about legislative trends and how nonprofits may use exculpation as a risk-mitigation tool.

All Minnesota employers must properly register with the Minnesota Unemployment Insurance Program for purposes of government-provided paid leave benefits. Wage reporting obligations start October 31, 2024.

Many states’ charitable solicitation statutes require nonprofits to include disclosure language on charitable solicitation materials. These state-specific disclosure obligations provide key information to donors, essentially as a consumer protection

What does it mean to be a religious organization under federal tax exemption law? Attorneys Jonathan Hwang and Meaghan Falkanger addressed this question at length recently, at the ABA Business Law’s September 2024 meeting.

Attorney Sally Wagenmaker recently contributed to an updated version of the Evangelical Council for Financial Accountability (ECFA)’s e-book on “Answering Your Overtime Questions."

How does Mayfield v. U.S. Department of Labor inform nonprofit employer best practices regarding the FLSA exempt salary threshold increases?

How can churches and nonprofits balance the desire to integrate sex offenders, within worship and other activities, considering their legal responsibilities and risk mitigation concerns?

To what extent may Section 501(c)(3) nonprofits engage in political advocacy? Should they refrain from certain communications, such as for their social media accounts and special event speakers?

The State of Texas isn’t bound by the DOL’s exempt salary threshold increase, per a new court ruling. Is that a bellwether for other employers too?

Effective January 1, 2025, the newly amended Illinois Not-For-Profit Act requires new public DEI disclosures of officers and directors for certain nonprofits.

Should nonprofits offer pre-tax educational benefits to employees? What conditions apply the Internal Revenue Code, and what are the best options?

Correctly distinguishing between employees and independent contractors can be tricky. What should responsible nonprofits do when the line seems blurred?

What is legally required for property tax exemption under Illinois law? Is 501(c)(3) status enough? Avoid common pitfalls and learn more in an educational webinar presented by attorney Sally Wagenmaker, courtesy of Women's Property Tax Association..

Effective July 1, 2024, the vast majority of employees working in Chicago will be covered under the new Paid Leave and Paid Sick and Safe Leave Ordinance.

Evangelical Council for Abuse Prevention (ECAP) has made available a webinar, addressing mandatory reporting laws, clergy-penitent privilege, and related communications in connection with child abuse issues.

This article, third in a blog series on church and nonprofit safety, focuses on response and management of precipitating threats and disturbances – namely, how should leaders handle these situations proactively and effectively?

In today’s virtual world, nonprofits have experienced significant changes in how they operate their board governance, conduct staff meetings, carry out fundraising events, promote membership engagement, and handle other program activities.

How long should nonprofits retain security and other video recordings? Key considerations inform policy and exceptions, such as litigation holds.

Salary thresholds for employees qualifying for the “white-collar” and the ‘highly compensated” exemption will soon increase, as a result of a finalized rule issued by the U.S. Department of Labor.

In the Buettner case, the Court of Appeals resoundingly rejected the argument that Title IX applies to all Section 501(c)(3) organizations solely on the basis that such tax-exempt status equates receipt of “federal financial assistance.”

Our law firm recently concluded litigation acutely illustrating the serious problems that can be caused from nonprofit merger deficiencies and power struggles.

As the second article in our series on church safety and security, it is an honor and pleasure to publish the following guest blog from Simon Osamoh, who is an expert in this field.

The Fourth Circuit’s pending Buettner case addresses whether 501(c)(3) tax-exempt status alone equates to Title IX’s definition of financial assistance.

How can ministry leaders best promote safety and address security concerns in light of increased hostility and violence at religious gatherings?

The U.S. Corporate Transparency Act requires the provision of “beneficial owner” information to FinCEN. Surprisingly, it applies to certain nonprofits.

We are thrilled that attorney Clyde Taylor has become a W&O partner, as of January 1st, 2024. Clyde leads our Dispute Resolution practice group, helping clients resolve governance issues and handling nonprofit litigation.

Should nonprofit employers include mandatory arbitration clauses in employee agreements or use ADR agreements more generally? Are they legally enforceable?

Faith’s Law squarely addresses educator sexual misconduct of K-12 students in school environments. How do Illinois schools comply with resulting obligations?

Donor-advised funds (“DAFs”) are one of the most popular philanthropic vehicles in the United States. On November 13, 2023, the IRS released its first of a few anticipated proposed regulations offering much needed clarifications on DAFs.

Chicago’s new Paid Leave and Paid Sick and Safe Leave’s effective date is delayed to July 1, 2024, pending an amended ordinance release.

The U.S. Department of Labor (“DOL”) has issued a proposed rule which could jeopardize the applicability of certain employees’ “exempt” status for purposes of overtime and minimum wage requirements.

Thus far, 2023 has proved a banner year for new employment-related legal developments. What do churches and other nonprofits now need to consider?

Legal developments strengthen employees’ religious and pregnancy-related rights and shape “undue hardship” considerations. How should employers respond?

Tragically, grooming of children happens. The nonprofit sector is not free from these harmful tactics, aimed at eventually causing sexual harm. Nonprofit leaders thus need to proactively be on guard.

May nonprofits keep their records private from the general public? Yes and no. Disclosure of IRS Form 990s and Form 1023 is often required, though not always.

Should nonprofits use LLCs in connection with their operations? For nonprofit leaders seeking creative, cost-effective, and risk mitigation options, the LLC option may warrant a careful evaluation.

This article provides background of the National Labor Relations Board, summarizes the Stericycle decision, addresses jurisdictional exclusions for religious employers, focuses on employee handbooks and policies, and provides practical guidance.

Napa Institute Legal Foundation recently issued an evaluation of all U.S. jurisdictions, scoring them on factors affecting faith-based Section 501(c)(3) nonprofits.

Nonprofits are advised to be especially attentive to emerging data privacy requirements. Six states adopted comprehensive data privacy laws in 2023.

“Indemnification” – Many contracts contain this mouthful of a word, but what does it mean? And how important is it for nonprofits? This article addresses how indemnification affects nonprofits’ contractual arrangements.

What is a wage garnishment? What should a responsible nonprofit employer do upon receipt of a wage garnishment notice?

Corporate mergers and their legal kin, namely asset transfers and consolidations, sound like business concepts, but they bear enormous potential significance for nonprofit organizations.

Nonprofit leaders who want to protect their workforce against sexual harassment wisely adopt anti-harassment policies, implement training, and take other proactive measures to honor the safety and well-being of their employees.

For ongoing nonprofit legal compliance, what annual reports need to be filed? Three key types of reports may be required, depending on the specific state involved and the nonprofit’s particular activities: (1) IRS – a version of the IRS Form 990 ...

What happens when a person is injured in connection with a nonprofit’s activities? Two correct answers are (1) care should be given to the injured person; and (2) an incident report should be completed. Additional answers may include mandated rep...

If your nonprofit provides facility usage to another organization, could any fees charged then result in tax liability? This question of federal unrelated business income tax often becomes relevant to many nonprofit property owners, as they consi...

Effectively handling abuse allegation warrants careful proactive planning, not just reacting when the unthinkable happens. In churches and other childcare settings this means taking critical steps like worker screening, training, attentiveness to...

All’s well that ends well – at least according to Shakespeare and now Aegis for Dreams Foundation and its journey toward Section 501(c)(3) tax-exempt recognition. The Foundation is a self-described educational nonprofit that is producing an histo...

No doubt, our recent times have been epochal – significantly affecting individuals, nonprofits, and much more. We’ve seen a pandemic, racial tension, mass shootings, protests, war, incredible social media influence, and increasing division on soc...

Is it possible for a business to both maximize value for its owners and prioritize social improvement? Traditionally, business founders have been forced to choose one or other. Taxable limited liability companies (LLCs), partnerships, and corpora...

Does your organization own real estate that could be used by others? Perhaps your organization’s building or other property is currently occupied in whole or in part by other occupants? While the nonprofit sector has occupants, usage fees, and re...

Churches, synagogues, mosques, temples, and other houses of worship have long enjoyed Section 501(c)(3) public charity status, with resulting exemption from IRS Form 990 filings, availability of clergy housing allowances, and religious liberty pr...

“Can we get sales tax exemption?” Our law firm’s State Compliance and Tax Practice Group handles this question on a regular basis, usually for a specific state and increasingly with an eye toward online activity and multi-state legal compliance. ...

Innovative nonprofit leaders frequently leverage so-called “multicorporate structures” to achieve multiple beneficial objectives. May nonprofit corporations do so, such as through forming subsidiaries? If so, when, and why? What are the liability...

It is indeed a joyful day when a nonprofit receives the anticipated IRS determination letter, recognizing its tax-exempt status. But note: such status is under federal law and only for income tax liability generally. What state tax considerations...