Best Nonprofit & Charitable Organizations Lawyers in Nebraska

About Nonprofit & Charitable Organizations Law in Nebraska, United States

Nonprofit and charitable organizations play a vital role in Nebraska communities, providing a range of services in areas such as education, health, art, social support, and more. Establishing and maintaining a nonprofit in Nebraska involves following state and federal legal requirements, from initial formation with the Secretary of State to securing tax-exempt status and ongoing compliance. These organizations operate for public benefit rather than private profit, and are governed by a combination of state nonprofit corporation law, federal Internal Revenue Code provisions, and, depending on their activities, a variety of additional state and local regulations.

Why You May Need a Lawyer

While some nonprofit founders try to handle legal matters on their own, the landscape of laws and regulations can be complex. Common situations in which legal counsel is crucial include:

• Forming a nonprofit corporation and drafting compliant articles of incorporation and bylaws
• Applying for IRS recognition of tax-exempt status under section 501(c)(3) or other sections
• Ensuring compliance with federal and Nebraska state filing and reporting requirements
• Understanding charitable solicitation and fundraising regulations
• Addressing employment issues such as hiring, firing, and maintaining workplace compliance
• Resolving disputes among board members or with other nonprofit stakeholders
• Handling contracts, leases, or other business transactions
• Managing risk and liability and securing board protection
• Navigating mergers, dissolutions, or winding down operations
• Responding to IRS or Nebraska Attorney General investigations

A lawyer experienced in nonprofit law can help you avoid costly mistakes and ensure your organization remains in good standing with all relevant authorities.

Local Laws Overview

Nebraska law regulates nonprofits under the Nebraska Nonprofit Corporation Act, found at Nebraska Revised Statutes Chapter 21, Article 19. The act covers incorporation, governance, director and officer duties, and dissolution. Key aspects include:

• Formation: Nonprofits must file Articles of Incorporation with the Nebraska Secretary of State, including specific information required by both state and federal authorities.
• Governing Documents: Organizations must have bylaws outlining how the nonprofit will be managed.
• Registration and Reporting: After formation, nonprofits must file biennial reports with the Nebraska Secretary of State and maintain good standing.
• Charitable Solicitation: The Nebraska Charitable Solicitations Act requires certain charitable organizations to register with the Nebraska Attorney General before soliciting donations.
• Tax Exemptions: Nebraska nonprofits may seek state sales and use tax exemptions in addition to federal exemptions.
• Corporate Governance: Directors and officers have legal duties to act in the best interest of the organization.
• Public Disclosure: Organizations must make certain documents, such as IRS Form 990s, available for public inspection.

Other state and local laws can also come into play, especially for nonprofits engaging in fundraising, operating thrift stores, or employing staff.

Frequently Asked Questions

What types of nonprofits can be formed in Nebraska?

Nebraska allows the formation of public benefit, mutual benefit, and religious nonprofits. Most charitable organizations seek public benefit status.

How do I start a nonprofit organization in Nebraska?

The process typically includes deciding your mission, choosing a name, drafting and filing Articles of Incorporation, creating bylaws, holding an initial board meeting, applying for an IRS tax-exempt determination, registering with the Nebraska Attorney General for fundraising if needed, and applying for state and federal tax exemptions.

Is it necessary to obtain 501(c)(3) status?

If you want donations to your nonprofit to be tax deductible and to be exempt from federal income tax, you must apply for and be granted 501(c)(3) or other applicable tax-exempt status by the IRS.

What annual filings are required for Nebraska nonprofits?

Nonprofits must file a biennial report with the Nebraska Secretary of State and annual returns (Form 990 series) with the IRS. Some may need to submit annual registration or financial reports to the Nebraska Attorney General if they solicit charitable donations.

Do Nebraska nonprofits need to register to fundraise?

Most organizations that solicit contributions from the public must register with the Nebraska Attorney General, although there are some exemptions. Compliance with other states' fundraising laws may also be required if targeting out-of-state donors.

Can a Nebraska nonprofit pay its directors or officers?

Officers can be paid reasonable compensation for their services, but directors are generally volunteers. Any compensation must be fair, necessary, and approved by disinterested board members.

What are a board member’s legal responsibilities?

Nebraska law requires board members to act in good faith, with reasonable care, and in the best interests of the organization. These are known as the fiduciary duties of care, loyalty, and obedience.

How can we protect our nonprofit’s tax-exempt status?

Avoid engaging in prohibited political or substantial lobbying activities, do not allow earnings to benefit private individuals, and file all required government reports on time. Keep clear records and follow your governing documents.

What should we do if we want to dissolve our nonprofit?

Nebraska law requires following specific dissolution processes, including board and member approvals, paying debts, distributing any remaining assets according to your articles and state law, and filing dissolution documents with the Nebraska Secretary of State.

Where do we turn if our nonprofit faces a government investigation?

Retain legal counsel as soon as possible. A lawyer can help you understand your rights, responsibilities, and options during an Attorney General, Secretary of State, or IRS investigation.

Additional Resources

If you need information or support related to nonprofit and charitable organizations in Nebraska, these resources can be helpful:

• Nebraska Secretary of State - Business Services Division: For formation and reporting requirements.
• Nebraska Attorney General - Charitable Solicitations: For charitable registration and fundraising laws.
• Internal Revenue Service Exempt Organizations: For federal tax-exemption information and Forms 990.
• Nonprofit Association of the Midlands: Provides training, advocacy, and resources for Nebraska nonprofits.
• Legal Aid of Nebraska: May provide guidance or referrals for eligible organizations.

Next Steps

If you need legal assistance related to starting, managing, or resolving disputes for a nonprofit or charitable organization in Nebraska, consider the following steps:

• Clarify your organization’s goals and gather all relevant documents.
• Identify the issue or decision you need legal advice about, such as formation, compliance, contracts, or disputes.
• Consult with an attorney experienced in nonprofit and charitable organization law in Nebraska. Many attorneys offer an initial consultation to discuss your needs and how they can help.
• Contact local or state bar association referral services if you do not already have a lawyer.
• Stay organized, keep copies of all filings and correspondence, and follow your attorney’s guidance to help ensure continued compliance and best outcomes for your organization and its mission.

Remember that investing in qualified legal advice can help your nonprofit thrive and protect its ability to serve Nebraska communities for years to come.