Minnesota nonprofit organizations help address many societal needs in our state. For this reason, federal and state laws give nonprofit organizations special rights and privileges. Those rights and privileges also come with additional duties. The government wants to ensure that organizations are exclusively using their resources towards a nonprofit mission. This area of law is often called nonprofit law or charities law.
Legal Guidance for Nonprofits, Charities, and Foundations
When people refer to a nonprofit organization, they usually mean a nonprofit corporation recognized as a 501(c)(3) by the IRS. Related concepts include charities, foundations, social enterprises, and more. The laws vary depending on the type of nonprofit entity, classification, and tax status recognized by the IRS.
Most nonprofit organizations are small, operated by a few dedicated individuals. They may feel overwhelmed by the legal requirements and government bureaucracy. That is where attorney Aaron Hall comes in. Aaron assists nonprofits with the legal issues they face to avoid costly mistakes and errors.
State and federal requirements for nonprofit organizations vary depending on the organization’s size and type. Some of Minnesota’s largest operations are nonprofit organizations, including hospitals, major church denominations, and community destinations.
Minnesota Nonprofit Attorney Services
Common legal services for nonprofit organizations include the following:
- 501(c)(3) tax-exempt status
- Misuse of organization funds
- Breach of fiduciary duties
- Contracts and leases for nonprofits
- Gift acceptance policies for nonprofits
- Complex charitable gifts to nonprofits
- Articles of incorporation and bylaws for nonprofits
- Board of directors resolutions and governance matters
- For-profit and not-for-profit subsidiaries
- Nonprofit fundraising regulations
- Avoidance of unrelated business income tax (UBIT)
- Self-dealing, excess benefit, and private benefit transactions
- Nonprofit compliance with tax reporting requirements
Minnesota Nonprofit Organization FAQ
How Do You Start a Nonprofit Organization in Minnesota?
This article explains the basics of starting a nonprofit charity in Minnesota.
How Much Does It Cost to Set Up a 501(c)(3) Nonprofit Organization?
There are a few factors to determine the costs. Here is an overview of the costs of setting up a new nonprofit organization in Minnesota.
Can Nonprofit Organizations Lose Their Tax-Exempt Status?
Yes. Violation of nonprofit law can result in a nonprofit organization losing its tax exempt status. For example, this article explains how one nonprofit lost its tax-exempt status.
Can Nonprofit Organizations Merge Together?
Yes. You can learn more in this article discussing how to merge nonprofit organizations.
Can Churches Engage in Non-Church Activities?
There are special rules for churches and other religious organizations engaging in activities that would not be typical for a church. These are called ancillary activities. To learn more, see this article discussing how to avoid legal problems for churches and other religious organizations engaged in ancillary activities.
How Can I Learn More About Nonprofit Law by Video?
Attorney Aaron Hall has published a number of videos on nonprofit issues on Youtube. Here is one playlist. Here is a list of Aaron Hall’s nonprofit law videos.
What Should Board Directors Know to Avoid Legal Pitfalls?
This article helps people who serve on a nonprofit board understand their duties as a Board Member and avoid legal problems.
