2021 Nonprofits & Commercial Real Estate

Nonprofit and exempt organizations are often attracted to real estate because the asset class is seen as comparatively safe, yet offers opportunities for long-term appreciation and, perhaps, ongoing income.  Even if these investment assumptions prove correct, real estate assets – ownership of exiting property, development of new property, or leasing activities – implicate a range of restrictions, complications, and compliance obligations.  These include regulatory restrictions depending on whether the real estate investment furthers the entity’s charitable purpose or not; collaborations with for-profit joint ventures; and debt financing of investments.  This program will provide you with a real world guide to advising nonprofit and exemption organization clients about real estate activities.

• Use of 501(c)(3) funds for real estate acquisition and development
• Restrictions of using nonprofit/exempt organization funds in for-profit real estate transactions
• Compliance issues for nonprofit/exempt organizations participating in real estate deals
• Planning for event when something goes wrong – how to limit damage to for-profit and nonprofit