Best Nonprofit & Charitable Organizations Lawyers in Oregon

About Nonprofit & Charitable Organizations Law in Oregon, United States

Nonprofit and charitable organizations in Oregon play a vital role in the state's social and economic life. They serve purposes ranging from providing education and healthcare, to advancing the arts, supporting social services, and more. In Oregon, nonprofits are governed by a combination of federal, state, and local laws that dictate how organizations can form, operate, solicit donations, and maintain tax-exempt status. Nonprofit law is designed to maintain public trust, promote transparency, and ensure these organizations use their resources for the public good rather than personal gain.

Why You May Need a Lawyer

Starting, managing, or dissolving a nonprofit or charitable organization can be complex, often requiring compliance with numerous legal requirements. You may need a lawyer if you are:

• Starting a new nonprofit and need help with incorporation, drafting bylaws, or obtaining tax-exempt status.
• Handling contracts, employment issues, or real estate transactions for your organization.
• Responding to inquiries or investigations from government agencies regarding finances, fundraising, or governance.
• Managing internal disputes or conflicts of interest among board members or staff.
• Ensuring compliance with state solicitation laws while fundraising in Oregon or online.
• Revising your organization's bylaws or articles of incorporation.
• Dissolving the organization or merging with another nonprofit.
• Concerned about personal liability as a board member or officer.

Local Laws Overview

Oregon has specific laws and regulations that govern the creation and operation of nonprofit and charitable organizations:

• The Oregon Nonprofit Corporation Act outlines the formation, governance, and dissolution of nonprofit corporations in Oregon.
• Registration is required with the Oregon Secretary of State to legally operate as a nonprofit corporation.
• To solicit charitable contributions, most organizations must also register with the Oregon Department of Justice’s Charitable Activities Section.
• Maintaining federal tax-exempt status under Internal Revenue Code section 501(c)(3) or other sections requires ongoing compliance and regular filings with the IRS.
• Annual reports must be filed with the Secretary of State and, often, the Department of Justice.
• Board member responsibilities and fiduciary duties are taken seriously under state law, with potential personal liability for breach of duties.
• Fundraising is regulated, including requirements for disclosure, record-keeping, and permissible fundraising activities.

Additionally, Oregon law prohibits political campaigning by 501(c)(3) organizations and imposes rules on lobbying activities. Employment laws also apply to nonprofit staff, and special rules may govern charitable gaming, raffles, and bingo.

Frequently Asked Questions

What is the difference between a nonprofit and a charitable organization in Oregon?

In Oregon, all charitable organizations are nonprofits, but not all nonprofits are charitable. Charitable organizations exist for purposes like relieving poverty, advancing education, or lessening neighborhood tensions, while nonprofits can also include social clubs or business leagues.

How do I start a nonprofit in Oregon?

You must file Articles of Incorporation with the Oregon Secretary of State, create bylaws, appoint a board of directors, and apply for federal tax-exempt status with the IRS. Additional registration with the Oregon Department of Justice may be required if you solicit donations.

Do I need IRS 501(c)(3) status to be a nonprofit in Oregon?

No, but obtaining 501(c)(3) status provides significant federal tax benefits, allows donors to make tax-deductible contributions, and may be required for certain grants. You can be a nonprofit under state law without federal tax exemption, but you will lack these benefits.

What are the annual filing requirements for Oregon nonprofits?

Most nonprofits must file an annual report with the Oregon Secretary of State and, if they solicit donations, an annual report with the Oregon Department of Justice. You may also be required to file IRS Form 990.

Can the board members receive compensation?

Board members may be reimbursed for reasonable expenses or paid for their services, but excessive compensation can jeopardize tax-exempt status and may violate state law regarding conflicts of interest.

Are there specific rules for fundraising in Oregon?

Yes, most organizations that solicit funds in Oregon must register with the Department of Justice. There are rules concerning disclosure to donors, use of professional fundraisers, and record-keeping requirements.

What happens if my nonprofit does not comply with state regulations?

Noncompliance can result in penalties, loss of registration, personal liability for board members, or loss of tax-exempt status. Enforcement actions can come from the Oregon Department of Justice or other regulators.

How can my organization dissolve if we can no longer operate?

You must follow state procedures for dissolution, including notifying the Secretary of State and the Department of Justice, liquidating assets according to your bylaws and state law, and filing final tax forms. Legal guidance is often advisable.

Can nonprofits lobby or engage in political activity?

501(c)(3) organizations may engage in limited lobbying but cannot participate in political campaigns or endorse candidates. Other types of nonprofits may have different rules. Oregon law also imposes restrictions on certain political activities.

What are common mistakes nonprofits make in Oregon?

Failing to register and file required reports, misunderstanding board member duties, inadequate record-keeping, disregarding conflict of interest policies, and not keeping up with changes in law are common issues faced by Oregon nonprofits.

Additional Resources

Several resources are available for Oregon nonprofits seeking legal advice or information:

• Oregon Secretary of State - Corporation Division: Oversees nonprofit incorporation and annual reports
• Oregon Department of Justice - Charitable Activities Section: Regulates charitable solicitation and enforces nonprofit compliance
• Internal Revenue Service (IRS): Manages federal tax-exempt status and filing requirements
• Nonprofit Association of Oregon: Offers education, training, and support to nonprofits
• Local law libraries and pro bono legal services: Provide access to legal information and sometimes free or low-cost advice

Next Steps

If you need legal assistance related to a nonprofit or charitable organization in Oregon, consider the following steps:

• Document your organization's current structure, governance, and compliance status.
• Gather all relevant documents such as articles of incorporation, bylaws, and recent filings with the IRS or state agencies.
• Consult with an experienced attorney who specializes in nonprofit law in Oregon.
• Reach out to the Oregon Secretary of State or Department of Justice for guidance on specific regulatory questions.
• Consider attending a workshop or seminar offered by the Nonprofit Association of Oregon or other reputable groups.

Taking these steps will help your organization maintain compliance, avoid legal troubles, and focus on advancing your charitable mission in Oregon.