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. Even if the enterprise is nonprofit and charitable in nature that does not necessarily mean the enterprise is eligible for tax-exempt status. 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. Second, there is the distinct issue of how that entity is classified for federal tax purposes. Each classification comes with its own subtle tradeoffs. This program will provide you with a practical guide to non-profit choice of entity and obtaining tax-exempt status.
Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics, elimination of bias or Kansas credit.
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