Best Nonprofit & Charitable Organizations Lawyers in Louisiana

About Nonprofit & Charitable Organizations Law in Louisiana, United States

Nonprofit and charitable organizations play a crucial role in Louisiana by delivering essential services and resources to communities across the state. Nonprofit law covers the formation, operation, compliance, and dissolution of organizations that exist for purposes other than making a profit, such as religious, educational, cultural, and charitable entities. In Louisiana, these organizations must abide by specific state laws regarding incorporation, governance, fundraising, tax-exempt status, and reporting. Understanding the legal framework is vital for anyone involved in starting, managing, or advising a nonprofit in Louisiana.

Why You May Need a Lawyer

Legal issues can arise at any stage of a nonprofit's life cycle, from inception to ongoing operations and eventual closure. Common situations where nonprofit organizations may require legal help include:

• Incorporating a nonprofit entity under Louisiana state law
• Drafting or amending bylaws and governance documents
• Applying for federal and state tax-exempt status
• Compliance with charitable solicitation and fundraising regulations
• Handling employment and volunteer management matters
• Managing grants, contracts, and partnerships
• Addressing conflicts of interest or governance disputes
• Dealing with IRS audits or state investigations
• Navigating mergers, reorganizations, or dissolution

A lawyer familiar with Louisiana nonprofit law can help organizations avoid costly mistakes, ensure regulatory compliance, and uphold their charitable purposes.

Local Laws Overview

Louisiana has its own statutes and regulatory requirements for nonprofits, in addition to federal laws. Important aspects include:

• Nonprofit Incorporation: Louisiana nonprofits are formed under Louisiana Revised Statutes Title 12, specifically Chapter 2 on nonprofit corporations. Incorporators file Articles of Incorporation with the Louisiana Secretary of State.
• Bylaws and Governance: State law requires nonprofits to adopt bylaws and maintain proper governance structures, including a board of directors.
• Charitable Solicitation: Nonprofit organizations that solicit donations may need to register annually with the Louisiana Department of Justice, Attorney General’s Charitable Registration Section.
• Tax Exemption: Nonprofits may apply for federal tax-exempt status under IRS Section 501(c). To be exempt from Louisiana state taxes, separate applications to the Louisiana Department of Revenue and the Louisiana Department of Revenue Sales Tax Division may be necessary.
• Annual Filings: Most nonprofits must file annual reports with the Secretary of State to remain in good standing and may have other reporting obligations for charitable solicitation and the IRS (Form 990 series).
• Recordkeeping: Louisiana law requires nonprofits to keep certain records at the principal office, such as articles, bylaws, board meeting minutes, and membership records.
• Dissolution: Louisiana has specific procedures for dissolving a nonprofit, including asset distribution for charitable organizations.

These laws are complex and it is important to stay current with any legislative changes that may impact nonprofit operations.

Frequently Asked Questions

What is the process for forming a nonprofit in Louisiana?

To form a nonprofit, you must draft and file Articles of Incorporation with the Louisiana Secretary of State, create bylaws, appoint a board of directors, obtain an Employer Identification Number (EIN) from the IRS, and apply for tax-exempt status if desired.

Do I need to register my nonprofit with the Attorney General?

If your organization will be soliciting charitable contributions from the public, you likely need to register annually with the Louisiana Department of Justice, Attorney General’s Charitable Registration Section.

How do I obtain tax-exempt status for my nonprofit?

Tax-exempt status requires separate applications: federal status through the IRS under Section 501(c), and state tax exemption through the Louisiana Department of Revenue. Each has specific forms and requirements.

What are the annual reporting requirements?

Nonprofits registered in Louisiana must file an annual report with the Secretary of State. Those that solicit funds must file annually with the Attorney General. Most must also file an IRS Form 990 or equivalent annually.

Can nonprofit board members be compensated in Louisiana?

Yes, board members can be compensated if the bylaws allow it and if compensation is reasonable. However, excessive compensation can threaten tax-exempt status.

Are there restrictions on political activities for Louisiana nonprofits?

501(c)(3) nonprofits are strictly prohibited from engaging in political campaign activities. Limited lobbying is allowed, but organizations must follow IRS and state rules.

What are the rules for fundraising events and raffles?

Fundraising activities must comply with state and local laws. Charitable gaming, like raffles and bingo, is regulated and requires appropriate licensing from the state.

Does Louisiana require a minimum number of board members?

Louisiana nonprofit corporations must have at least three directors on their board, and these may not all be related parties if applying for 501(c)(3) status.

How are nonprofit assets distributed upon dissolution?

Upon dissolution, a charitable nonprofit's assets must be distributed for exempt purposes, typically to other charities or public entities, following Louisiana and IRS rules.

Do Louisiana nonprofits need insurance?

Louisiana law does not require every nonprofit to carry insurance, but liability, directors and officers, and property insurance are highly recommended to protect the organization and its stakeholders.

Additional Resources

For further guidance and information, consider consulting the following resources:

• Louisiana Secretary of State - Commercial Division: Oversees incorporation and annual reporting for nonprofits
• Louisiana Department of Justice, Attorney General’s Charitable Registration Section: Regulates charitable solicitation and fundraising
• Louisiana Department of Revenue: Administers state tax exemption and compliance
• Internal Revenue Service (IRS): Handles federal tax-exempt status and reporting
• The Louisiana Association of Nonprofit Organizations (LANO): Provides networking, training, and compliance resources
• Local law libraries and pro bono programs for legal assistance

Next Steps

If you need legal assistance regarding a Louisiana nonprofit or charitable organization, consider taking these steps:

• Identify your specific legal questions or concerns
• Gather your organization’s foundational documents, such as articles, bylaws, board minutes, and relevant correspondence
• Consult with a Louisiana attorney specializing in nonprofit and charitable organizations law
• Contact local nonprofit support organizations or pro bono legal clinics for additional help if budget is a concern
• Keep records of all communications and advice for your organization’s compliance files

Engaging knowledgeable legal counsel can help your organization not only comply with all relevant laws but also operate more effectively and achieve its charitable mission for the benefit of your community.