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Nonprofit and charitable organizations in Omaha operate under a specific set of legal guidelines designed to facilitate their mission-driven work while ensuring accountability and transparency. These organizations focus on various societal benefits, such as education, health, arts, and welfare. The legal framework for nonprofits in Omaha aligns with federal laws stipulated by the IRS for 501(c)(3) organizations, as well as Nebraska's state-specific regulations. Establishing, managing, and dissolving a nonprofit involves navigating numerous legal stipulations regarding governance, tax obligations, fundraising, and more.
Engaging a lawyer can be integral at several stages of a nonprofit's lifecycle. Here are some common situations where legal expertise might be necessary:
In Omaha, nonprofit organizations are subject to state regulations that govern the formation, operation, and dissolution of entities. Key aspects include:
A 501(c)(3) organization is a nonprofit entity in the United States that is exempt from federal income tax. This status is given to organizations that operate exclusively for religious, charitable, scientific, or educational purposes.
Starting a nonprofit involves several steps, including choosing a name, filing articles of incorporation, drafting bylaws, applying for an EIN, and applying for tax-exempt status with the IRS and state.
Nonprofits must adhere to ongoing requirements, such as annual filings with the IRS and the Nebraska Secretary of State, maintaining accurate records, and following governance policies.
While nonprofits aim to support their mission rather than generate profit, they can earn surplus income. However, this income must be reinvested into the organization’s activities rather than distributed as profit.
All charities are nonprofits, but not all nonprofits are charities. Charitable organizations specifically carry out activities that have a charitable purpose, such as poverty relief or education, whereas nonprofits can have broader mandates, such as social clubs or trade associations.
Nonprofits in Nebraska may be subject to sales tax on purchases and services unless they qualify for a sales tax exemption. They must apply for this exemption with the Nebraska Department of Revenue.
An Employer Identification Number (EIN) is a unique number assigned by the IRS to entities operating in the U.S. For nonprofits, an EIN is needed for tax filings and is required to open a bank account.
Nonprofits can lose tax-exempt status by engaging in prohibited activities such as political campaigning, not filing annual returns, or deviating from the mission they were granted exemption under.
The Nebraska Charitable Solicitations Act regulates fundraising activities and requires charities to register with the state to solicit donations legally.
Board members generally are not personally liable for a nonprofit’s debts. However, they are required to act in the organization’s best interest and may be held accountable for negligence or breach of fiduciary duty.
For more information or assistance, consider contacting the following organizations and bodies:
If you need legal assistance for your nonprofit organization in Omaha, consider taking the following steps:
Proactively seeking legal advice can help ensure that your nonprofit complies with all relevant laws and operates effectively, allowing you to focus on your mission.
