Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Nonprofit and charitable organizations in Phoenix play a vital role in the community by addressing social needs, providing services, and promoting various causes. These organizations operate under specific legal and regulatory frameworks that ensure their activities benefit the public and conform to federal, state, and local laws. In Phoenix, nonprofits include a wide range of entities, such as public charities, private foundations, and community organizations. Complying with legal requirements is crucial for these organizations to maintain their tax-exempt status, receive public donations, and operate efficiently.
Engaging a lawyer is essential for nonprofit and charitable organizations due to the complex legal environment in which they operate. Common situations where legal help may be needed include:
Phoenix nonprofits are governed by a combination of state and local laws specific to Arizona and Maricopa County. Key legal aspects include:
Starting a nonprofit requires choosing a name, drafting articles of incorporation, and filing with the Arizona Corporation Commission. After incorporation, apply for a federal Employer Identification Number (EIN), create bylaws, and apply for tax-exempt status with the IRS.
The IRS may take 3-12 months to review applications for tax-exempt status under Section 501(c)(3). Delays can occur if additional information is requested during the review process.
Yes, nonprofits that solicit donations from the public must register with the Arizona Secretary of State and provide disclosures on fundraising materials.
Nonprofits must file an annual report with the Arizona Corporation Commission and submit Form 990 to the IRS. Additional state filings may be required based on the organization’s activities.
Charitable activities typically include educational, religious, scientific, and literary purposes, as well as activities that relieve the poor, distressed, or underprivileged.
Yes, nonprofits can hire employees and offer competitive salaries. However, compensation must be reasonable and in line with similar roles in the sector to avoid jeopardizing tax-exempt status.
Board members generally are not personally liable for the nonprofit’s debts. However, they must act in accordance with fiduciary duties and may be liable for misconduct or negligence.
Nonprofits should trademark their names and logos to protect branding, and they must ensure proper copyright or licensing agreements for materials they create or use.
501(c)(3) organizations are prohibited from engaging in political campaign activities or making contributions to political campaigns. They may engage in limited lobbying activities subject to restrictions.
To dissolve, a nonprofit must follow the process outlined in its bylaws and applicable state laws, which typically involves a board vote, notifying the Arizona Corporation Commission and IRS, and distributing remaining assets according to state laws.
For further assistance, the following resources can be invaluable:
If you are seeking legal assistance in the field of nonprofit and charitable organizations in Phoenix, consider the following steps:
