Not-For-Profit Law

Expertise

• Structured programs of pooled income funds, charitable remainder trusts and gift annuities
• Initiated an ambitious American fund raising program for a renowned foreign university
• Assisted a leading engineering school to generate revenue from its patents and copyrights through investor-funded limited liability companies
• Implemented a securities lending program for a well-known charity
• Represented a large post-graduate institution in outsourcing its food and computer services
• Assisted a religious organization in leasing space in its New York City headquarters building and a museum in offering parking to the general public without exposing them to property or unrelated business income tax
• Arranged low-cost tax-exempt financing for renovating a college auditorium and a gymnasium, for building and outfitting medical facilities and hospices and for buying and improving headquarters for a not-for-profit publisher
• Helped to prepare model documents for museums to license images of their collections to developers of CD-ROMS
• Counseled a university about its "distance learning" program and developed documents to avoid entanglement in intellectual property disputes
• Advised a foreign academic organization and domestic not-for-profit publishers about qualifying for low postal rates
• Organized an affiliated day care center for children of the staff of a home for the elderly
• Implemented an exchange visitor program for the American managers of an international not-for-profit to facilitate training here of visitors from overseas
• Negotiated an ³affinity² credit card program for a well known graduate school

Clients

Services

A not-for-profit that is exempt from Federal income taxation may nevertheless be exposed to state and local income tax, sales and commercial rent tax or property tax. For that reason we obtain exemptions from a variety of New York State and New York City taxes and also from state and local taxes elsewhere.

For our not-for-profit clients that are concerned with fundraising, we advise about pooled income funds, charitable remainder trusts and gift annuity programs. We analyze the tax consequences of contributions of property and bargain-sale transactions. We also keep our clients informed about changing regulatory constraints and compliance issues affecting fundraising.

Many of our not-for-profit clients are trying to generate more of their own income, often from commercializing their intellectual properties. For some we have concluded licenses utilizing our highly-regarded copyright and trademark capabilities. For others we have structured relationships for them with business partners or with investor groups.

Generating income of their own sometimes exposes not-for-profits to the unrelated business income tax. Consequently we offer advice about avoidance of UBIT for clients that invest in limited partnerships, acquire investment real property, conduct leasing and licensing activities or otherwise engage in activities that may be considered unrelated businesses and that might imperil our clients' tax-exempt status.

Foreign not-for-profits are subject to special regulations when operating in the United States. We are familiar with the rules to which they are accustomed at home and the rules with which they must comply in the United States and with tax treaties that are often helpful to them. They seek our guidance about soliciting deductible contributions from United States donors and satisfying American postal regulations for low-cost mailing privileges.

Foreign not-for-profits, and domestic not-for-profits too, rely on our immigration law capability to bring staff and visitors into the United States and to operate exchange visitor programs.

We advise not-for-profits about employment law issues, including the special issues affecting qualified retirement income programs for their managers, the classification of personnel as independent contractors or employees, employment discrimination matters, employee health and welfare benefit programs and issues involving personal liability of officers and directors. We counsel social service agencies about Federal, state and local regulation of the services they provide.

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