If you are a nonprofit organization, or looking to start a nonprofit organization, your first instinct is to bypass legal services since you are on a limited budget. However, it is vital to remember in the nonprofit realm that prevention is less costly than cures. Any failure to follow the federal and state rules governing nonprofits can result in the IRS imposing penalties against your nonprofit and you personally.
At Mohammed, Shamaileh & Tabahi, LLC, we understand that every nonprofit service is unique. There is no "one size fits all" approach, and for this reason, we strongly advise you to seek the help of an attorney that focuses on nonprofit setup and governance. Doing so will prevent common issues like fundraising and solicitations.
Our team of lawyers has several years of experience helping nonprofit businesses get off the ground. Here are some ways we can help your nonprofit start off on the right foot.
Establishing Your Corporation
Mohammed, Shamaileh & Tabahi, LLC will ensure you form the right business under state law with the Illinois Secretary of State. Upon acceptance, you can then apply for recognition with the IRS as a 501(c)(3) organization.
To take this first step, you will need to clearly identify your charitable purpose, gather evidence supporting your purpose, establish Bylaws and Articles, and identify the necessary Directors who will assist you manage the nonprofit.
Is Your Non-Profit Legally Compliant?
Every nonprofit must abide by state and federal laws. Our team of attorneys at Mohammed, Shamaileh & Tabahi, LLC understands what these laws are in the state of Illinois. We'll be able to inform you and advise you on nonprofit rules.
For example, these types of organizations must be transparent with how they spend their funds and implement a strict financial record-keeping system, including where all funding came from. A common misconception is that all income derived through a nonprofit is tax exempt. That is not the case. Certain types of income earned by the nonprofit may be subject to taxation. Let our team of lawyers guide you through the complexities of Illinois law and the IRS tax code.
Help Using Specific Language
Nonprofit organizations need to adopt bylaws and Articles of Organization. When drafting these documents, you must use a specific language or risk being denied by the IRS and delaying the start of your operations.
A nonprofit services attorney will help you use the right verbiage to ensure your organization's articles of incorporation get accepted in the state of Illinois. This process will ensure you receive tax exemption from the IRS, and everything is in order.