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Originally Posted On: https://chisholmfirm.com/why-every-nonprofit-needs-a-nonprofit-attorney/

Why Every Nonprofit Needs a Nonprofit Attorney

Starting and managing a nonprofit organization involves a range of legal, financial, and strategic challenges. As a nonprofit founder or leader, you might wonder whether hiring a nonprofit attorney is necessary. Perhaps you’ve had a less-than-ideal experience with legal counsel in the past, are concerned about the costs, or aren’t sure how an attorney could add value to your organization.

Having a skilled nonprofit attorney on your team can make all the difference. From helping you navigate the complexities of IRS regulations to getting donations to providing legal services that accelerate your growth, a nonprofit attorney can be invaluable in achieving your mission.

Here is a closer look at why every nonprofit should work with an attorney and how they can help your organization thrive.

The Role of a Nonprofit Attorney in Forming Your Nonprofit

A nonprofit attorney manages the entire formation process when forming a nonprofit organization. They handle the necessary state and federal paperwork, ensuring your organization complies with IRS regulations and successfully completes the tax exemption process. With their extensive knowledge of nonprofit law, they can guide you through the requirements for drafting your articles of incorporation, filing your state registration, and applying for tax-exempt status with the IRS – allowing you to focus on your mission.

In the initial stages of nonprofit organizations, having a nonprofit attorney’s guidance helps avoid costly mistakes that could jeopardize your organization’s future. Nonprofit founders often overlook critical legal details, so including an attorney’s guidance and support ensures that your organization starts on solid ground.

Answering Complex Questions Throughout the Nonprofit’s Lifecycle

Throughout your nonprofit organization’s lifecycle, challenging questions will arise. Issues may include changes in board members, fundraising strategies, and property transfers. Having a dedicated nonprofit attorney ensures you receive quick and accurate answers tailored to your unique situation.

An attorney is a valuable resource for strategic decision-making. They can help clarify the legal implications of various choices and provide practical solutions that align with your nonprofit’s goals. This ongoing support from an attorney is especially beneficial for small nonprofits that may not have in-house legal counsel.

A nonprofit attorney also helps you stay proactive by offering guidance on potential challenges before they escalate into bigger issues. Whether it’s staying up-to-date with evolving regulations or adapting to changes in tax laws, having legal counsel ensures your nonprofit remains compliant and well-positioned for long-term success.

Strategic Planning for Growth

A nonprofit attorney can play an important role in shaping the growth strategy of your organization. Beyond legal compliance, they can help you plan for expansion in ways that align with both your mission and regulatory requirements. When you incorporate legal insights into your growth strategy, including handling nonprofit incorporation and compliance matters, it allows your organization to expand without legal obstacles.

Attorneys can also be invaluable in providing strategic advice in several key areas. For example, they can help you navigate the legal aspects of donor engagement, ensuring that your fundraising practices comply with solicitation laws while maximizing donor relations.

In the area of volunteer management, a nonprofit attorney can help you establish policies that protect your organization from liability and ensure you follow employment laws. Additionally, when it comes to securing funding, an attorney can guide you through the complexities of grant applications, contracts, and agreements, making sure all terms are legally sound and beneficial for your nonprofit.

At Chisholm Law, unlike many general law firms, we provide legal advice designed to help nonprofits grow with confidence. By offering strategic guidance across all these areas and more, we help you position your organization for success and expedite your path to achieving your mission.

Saving Money Through Legal Guidance

While hiring a nonprofit attorney might seem like an added expense, it can actually be a cost-saving measure in the long run. Having legal guidance from the outset can help your organization avoid costly mistakes that could lead to financial penalties, compliance issues, or litigation. An attorney’s involvement ensures that your nonprofit adheres to the proper legal procedures, preventing problems before they arise.

One way a nonprofit attorney can help you save money is through tax benefits. Legal fees associated with forming and maintaining your nonprofit can often be deductible, providing a financial benefit to your organization. Additionally, attorneys can help you take full advantage of tax law, exemptions, and credits that are available to nonprofits, further reducing your financial burden.

The potential costs of legal disputes can also be significant, from attorney fees to court costs and settlement expenses. When you involve an attorney early on, you can prevent these expensive situations, saving money in the long run. A nonprofit attorney can provide your organization with a proactive approach that helps avoid legal disputes altogether, preventing unexpected and often expensive financial strain.

Peace of Mind and Compliance Assurance

One of the greatest benefits of having a nonprofit attorney is the peace of mind that comes from knowing your organization is in full compliance with IRS and state laws. Navigating the legal landscape of nonprofit management can be overwhelming, especially with the complexities of compliance, charitable solicitation rules, and reporting requirements that tax-exempt organizations must adhere to.

A nonprofit attorney can ensure that your organization stays on top of these obligations, reducing the risk of penalties or loss of tax-exempt status.

Keeping up with ever-changing regulations is another challenge that nonprofits face. New laws or IRS updates can have significant implications for your organization’s operations. A nonprofit attorney can monitor these developments and advise you on any necessary adjustments to your practices, ensuring that your nonprofit remains compliant as regulations evolve.

Chisholm Law helps private foundations, nonprofit organizations, public charities, and private foundations navigate all the challenges of the legal landscape. With a deep understanding of nonprofit law, we guide our clients through the complexities of tax-exempt status, filing requirements, and charitable solicitation laws. We keep them up-to-speed with regulatory changes and necessary compliance actions, helping them avoid penalties and legal challenges.

Work with Chisholm Law Today

Hiring a nonprofit attorney is an important step in ensuring your organization’s long-term success. Their role in forming your nonprofit organization, answering complex questions, providing strategic planning, and ensuring compliance with nonprofit law is invaluable.

If you’re ready to take your nonprofit to the next level, contact Chisholm Law for a free consultation. Our dedicated team is here to help you navigate the legal landscape and provide the guidance you need to achieve your mission with confidence. With Chisholm Law on your side, you’ll have the legal support necessary to build a strong, compliant, and thriving organization. Contact us today to schedule a free consultation.