Best Nonprofit & Charitable Organizations Lawyers in Concord

About Nonprofit & Charitable Organizations Law in Concord, United States

Nonprofit & Charitable Organizations in Concord, United States, operate within a specific legal framework that is designed to facilitate their mission-driven work while ensuring compliance with various regulatory requirements. These organizations are typically established to serve charitable, educational, religious, or public service purposes and are exempt from paying federal and state income taxes. However, they must adhere to stringent governance and operational standards to maintain this status. Legal considerations for nonprofits in Concord include formation, governance, fundraising, compliance, and dissolution, among others.

Why You May Need a Lawyer

Individuals or groups considering starting or currently managing a nonprofit organization may require legal assistance for several reasons:

• Formation and Organization: Legal advice is crucial when drafting the articles of incorporation, bylaws, and obtaining federal and state tax exemptions.
• Compliance: Navigating federal and state regulations, including annual reporting and maintaining tax-exempt status, requires knowledgeable guidance.
• Fundraising and Donations: Legal expertise is essential in creating sound donation agreements and ensuring compliance with fundraising laws.
• Governance: Advising on board responsibilities, conflict of interest policies, and best practices in nonprofit governance.
• Employment Law: Handling employee contracts, volunteer agreements, and understanding applicable labor laws.

Local Laws Overview

In Concord and across the state of New Hampshire, nonprofits must comply with specific local ordinances in addition to federal laws. Key aspects include:

• New Hampshire Nonprofit Corporation Act: Governs the formation, operation, and dissolution of nonprofit entities within the state.
• State Tax Laws: While nonprofits are generally exempt from income taxes, they must adhere to sales and use tax regulations and property tax exemptions.
• Charitable Solicitation Act: Requires registration and periodic reporting for organizations involved in fundraising activities.

Frequently Asked Questions

1. What is the process to start a nonprofit organization in Concord?

Starting a nonprofit involves several steps, including choosing a name, appointing a board of directors, drafting and filing articles of incorporation with the New Hampshire Secretary of State, creating bylaws, applying for an Employer Identification Number (EIN), and applying for federal and state tax-exempt status.

2. How can I maintain my organization's tax-exempt status?

To maintain tax-exempt status, nonprofits must comply with regulatory requirements, including filing annual returns (Form 990 series) with the IRS and submitting any required state filings.

3. What types of activities can jeopardize tax-exempt status?

Engaging in prohibited political activity, generating significant unrelated business income, or failing to file annual returns can jeopardize tax-exempt status.

4. Are there limits on what a nonprofit can do?

Nonprofits must primarily engage in activities that further their exempt purposes and avoid excessive lobbying or political campaigning.

5. How are donations to my nonprofit organization treated for tax purposes?

Donations to qualified nonprofits can be tax-deductible for the donor, subject to certain conditions and limitations outlined by the IRS.

6. Do nonprofits need to comply with employment laws?

Yes, nonprofits must comply with federal, state, and local employment laws, including those related to minimum wage, overtime, and workplace safety.

7. What is the role of a nonprofit board of directors?

The board of directors is responsible for overseeing the organization’s operations, ensuring legal compliance, and safeguarding the organization's mission and assets.

8. Can a nonprofit generate profit?

While nonprofits can generate income, they must reinvest any profit into the organization’s mission-related activities. Distributing profits to members or directors is prohibited.

9. What is required to dissolve a nonprofit organization?

Dissolving a nonprofit generally requires a formal vote by the board, fulfilling any remaining obligations, notifying creditors, and filing articles of dissolution with the state.

10. Do I need a legal audit for my nonprofit?

Periodic legal audits are advisable to ensure ongoing compliance with laws and regulations and to address any potential risks or liabilities.

Additional Resources

• New Hampshire Attorney General’s Charitable Trusts Unit: Provides guidance and oversight on charitable organizations.
• IRS Exempt Organizations Division: Offers resources and forms related to federal tax-exempt status.
• Nonprofit Association of Northern New England (NANNE): Provides support and resources for nonprofits in the region.

Next Steps

If you need legal assistance with your nonprofit organization, consider taking the following steps:

1. Research: Begin by gathering information about the specific legal needs of your organization.
2. Consultation: Schedule a consultation with a lawyer specializing in nonprofit law to discuss your organization’s needs and potential legal issues.
3. Engage Services: Work with your attorney to address any legal concerns, ensuring compliance and operational efficiency.
4. Stay Informed: Continuously educate yourself on changes in laws and regulations affecting nonprofits to maintain compliance.