Presentation on theme: "Doing Business 2.0 Starting and Operating a Nonprofit in DC George E. Constantine, III, Esq., Partner Venable, LLP, Washington, DC (202) 344-4790"— Presentation transcript:
Doing Business 2.0 Starting and Operating a Nonprofit in DC George E. Constantine, III, Esq., Partner Venable, LLP, Washington, DC (202)
George E. Constantine, III, Esq. Counsel to tax-exempt charities, trade associations, professional societies, labor organizations Former Staff Counsel for the American Society of Association Executives Concentrates practice on tax-exemption matters, contracts, election law, corporate governance and other issues affecting tax- exempt, nonprofit corporations.
Forming a NonprofitPreliminary Steps Establish mission and goals Survey the landscapeare there other organizations pursuing similar mission and goals? Assess likelihood of funding, dedicated volunteer resources, etc.
Forming a NonprofitLegal Requirements Articles of Incorporation Name (doesnt need an Inc. or similar signifier in DC) Purposes Name and street address of incorporators Members or not? Classes? List of initial directors (at least 3, optional to list them) Designated body?
Forming a NonprofitLegal Requirements Articles of Incorporation (continued) Registered agent in DC 501(c)(3) dissolution and purposes language Indemnifying directors and limitations of liability
Forming a NonprofitLegal Requirements File Articles with DCRA (one incorporator, notary not needed) Draft Bylaws More detailed than Articles of Incorporation Should include discussion of Board of Directors, Committees (if applicable), Members (if applicable), indemnification, etc. Organizational resolutionsapproving Bylaws, authorizing establishment of bank accounts, naming corporate officers (at least a President, Secretary and Treasurer), approving policies
Forming a NonprofitLegal Requirements Tax Forms Federal Exemption applicationForm 1023 for 501(c)(3); Form 1024 for most other types of exempt organizations DC ExemptionForm (c)(3) organizations can obtain exemption recognition for franchise (income) tax, sales and use tax, personal property tax Applicable as of date of IRS recognition
Charitable Solicitation Charitable Solicitation License Occupancy certification Good standing as a corporation Tax registration FR500 Clean Hands certification Basic Business License Application Articles of Incorporation, Bylaws, Uniform Registration Statement, other documents
Other Considerations Operating, fundraising in other states? Trademark registration URL reservation Lobbying registration Affiliated entities? Insurance coverage (note minimum levels of $200K for individual claim and $500K for total claims in order to benefit from volunteer immunity provisions)
Basics on Nonprofit Corporation Legal Issues Hierarchy of Authority State Nonprofit Corporation Law (statute and common law) Articles of Incorporation Bylaws Board Policies and Procedures Unwritten Common Practices
Basics on Nonprofit Corporation Legal Issues Governance Structure Board of directors Executive committee Other committees of the board (nominating, finance) Members Other committees Staff
Corporate Governance Fiduciary Duties Care Loyalty Obedience
501(C)(3) Issues Public benefit requirementcharitable, educational, advancement of health, etc. No substantial private benefit No private inurement Political activities Lobbying UBIT
501(C)(3) Issues Form 990 Once a year (May 15 deadline for calendar year filers) 990-Neven very small organizations have to do it Automatic revocation Publicly available information
Contact Information George E. Constantine, III Partner Venable LLP 575 7th Street, NW Washington, DC Phone: Fax: