Best Nonprofit & Charitable Organizations Lawyers in Billings

About Nonprofit & Charitable Organizations Law in Billings, United States

In Billings, nonprofit organizations operate under a dual framework of federal and Montana state law. Formation, governance, and dissolution are guided by Montana's nonprofit statutes, while fundraising and charitable solicitation are regulated at the state level. Federal tax-exemption for most charities comes from the Internal Revenue Code, with ongoing IRS reporting required to maintain status. Local practice in Billings often involves coordinated efforts among legal counsel, accountants, and board members to stay compliant and fulfill the organization’s mission.

Because Billings sits in Montana, nonprofits must align their operations with both state and federal requirements. This means accurate corporate records, robust governance practices, and timely filings with state authorities and the IRS. An attorney specialized in nonprofit law can help ensure ongoing compliance and strategic planning for sustainable community impact.

Why You May Need a Lawyer

• Starting a new Montana nonprofit: You need articles of incorporation, bylaws, and a board of directors drafted to meet state requirements. An attorney helps structure the formation correctly from the outset.
• Applying for 501(c)(3) status: The IRS exemption process requires precise governing documents and answered disclosures. A legal counsel guides Form 1023/1023-EZ and sets up governance to satisfy exemptions.
• Fundraising in Montana: If you solicit donations in Billings, you must register with the Montana Secretary of State and comply with disclosures. A lawyer handles filings and ongoing reporting.
• Governance and policy development: Lawyers draft conflict of interest policies, minutes templates, and governance guidelines to maintain compliance and transparency.
• Mergers, affiliations, or dissolutions: If plans involve merging with another charity or dissolving, counsel guides the statutory steps and asset distribution rules.
• Thorough compliance with reporting and tax obligations: Timely IRS Form 990 filings and state reports require disciplined recordkeeping. An attorney can manage deadlines and accuracy.

Local Laws Overview

Montana law governs nonprofit formation and governance at the state level, while federal law governs tax-exempt status. The interaction between these regimes drives how a Billings charity operates in daily practice.

• Montana Nonprofit Corporation Act (Mont. Code Ann. Title 35): Governs formation, governance, and dissolution of nonprofit corporations in Montana, including articles of incorporation and director duties. The Montana Legislature hosts the current text on its site.
• Montana Charitable Solicitations Act: Regulates charitable solicitations conducted in Montana, including registration, disclosures to donors, and annual reporting. The Montana Secretary of State administers these requirements through the Charities program.
• Internal Revenue Code Section 501(c)(3): Establishes federal tax-exempt status for charitable organizations and sets ongoing compliance obligations with the IRS.

For current text and updates, consult official sources listed below. These references provide authoritative guidance on Montana and federal requirements for nonprofits in Billings:

Authorities: IRS - Charities and Non-Profits, Montana Secretary of State - Charities, Montana Department of Justice - Charities.

Frequently Asked Questions

What is the difference between a nonprofit corporation and a charitable trust in Montana?

A nonprofit corporation is created under Montana law with articles of incorporation and a board. A charitable trust is an estate planning tool managed by trustees. Both can pursue charitable goals, but governance, reporting, and formation differ significantly.

How do I start a Montana nonprofit and apply for 501(c)(3) status?

Begin with articles of incorporation and bylaws filed with the Montana Secretary of State. Prepare Form 1023 or 1023-EZ for IRS exemption and compile required financial information and governance documents.

When is Form 990 due for a Montana tax-exempt organization?

Most tax-exempt organizations file Form 990 by the 15th day of the 5th month after the end of their accounting period. Small organizations may file Form 990-N (e-Postcard) if eligible.

Where do I register to solicit donations in Billings, Montana?

Registration is typically with the Montana Secretary of State for charitable solicitations. Additional disclosures may be required in annual reports and donor communications.

Why would I need to hire an attorney for nonprofit formation?

A lawyer helps ensure proper structure, compliance with state and federal laws, and robust governance to protect assets and avoid conflicts or enforcement actions.

Do I need to file annual reports with the Montana Secretary of State?

Yes, many Montana nonprofit entities must file annual reports and renew registrations. Failing to comply can lead to penalties or loss of status as a registered nonprofit.

Should I hire a local Montana attorney or a larger firm?

A local attorney familiar with Billings and Montana nonprofit practice can offer practical guidance and faster communication, though larger firms can provide depth on complex matters.

Do Montana nonprofits pay state income tax or owe taxes in Montana?

Montana corporations may face state tax obligations unrelated to the federal tax-exempt status. Consult an attorney to understand any state tax requirements for your entity.

What is UBIT and how does it affect a Montana charity?

Unrelated Business Income Tax applies when a charity earns income from activities not substantially related to its exempt purpose. Such income may be taxable to the organization.

How much does it cost to form a Montana nonprofit with the SOS?

Fees vary by filing type and filings required. An attorney can provide a precise estimate and help minimize initial costs through proper planning.

What is the process for dissolving a Montana nonprofit?

The process involves board action, member approvals if required, and filings with the Secretary of State, plus proper handling of assets under Montana law.

Additional Resources

• IRS - Charities and Non-Profits: Provides guidance on tax-exempt status, ongoing compliance, and Form 990 requirements for federal exemption. https://www.irs.gov/charities-non-profits
• Montana Secretary of State - Charities: Administers nonprofit incorporation, annual reports, and charitable solicitation registrations in Montana. https://sosmt.gov/charities/
• Montana Department of Justice - Charities: Oversees consumer protection and enforcement related to charitable organizations in Montana. https://doj.mt.gov/consumer-protection/charities/

Next Steps

1. Clarify your organization’s mission, size, and fundraising plans. Set a realistic budget for legal and compliance costs within 1 week.
2. Choose a nonprofit structure and prepare initial formation documents. Allocate 2-3 weeks to draft articles, bylaws, and a governance framework.
3. Consult a Montana nonprofit attorney for a 30-60 minute introductory review to assess specific needs and timelines.
4. Prepare IRS 501(c)(3) materials and Montana state filings in parallel. Schedule a timeline with your attorney and a plan for responsive documents.
5. File with the Montana Secretary of State and submit your IRS exemption application. Track deadlines and set reminders for follow-up actions.
6. Develop governance policies, donor disclosures, and financial controls. Review these policies annually or after major changes.