Do I Need a Nonprofit Attorney?

What do nonprofit lawyers do?

A nonprofit attorney handles many of the same legal matters as a business attorney, but they focus on the special rules that apply to nonprofit organizations. For example:

1. Starting your nonprofit

• Choosing the right type of nonprofit, like a 501(c)(3) or 501(c)(4)
• Filing the paperwork to create it, such as Articles of Incorporation
• Writing nonprofit bylaws and other rules for how your nonprofit will run
• Applying for tax-exempt status with the IRS

2. Keeping your nonprofit compliant

• Following federal, state, and local laws
• Filing taxes when needed
• Meeting IRS requirements for tax-exempt organizations
• Understanding the rules on fundraising, accepting donations, and donor restrictions

3. Drafting and reviewing contracts

• Agreements with donors, vendors, or partners
• Employee contracts, workplace disputes, and labor law compliance
• Policies for volunteers that help protect your organization

4. Handling disputes and major changes

• Resolving disagreements between board members or other stakeholders
• Protecting your nonprofit in court if there's a legal dispute
• Managing the legal process if your nonprofit merges with another organization or closes

How do I know if I need a nonprofit attorney?

Ask yourself these questions:

• Do you need help registering your nonprofit and filing the correct paperwork?
• Are you unsure which legal structure, like a 501(c)(3) or 501(c)(4), is best for your organization?
• Do you need help writing bylaws or setting up a board of directors?
• Do you need help with the compliance and reporting requirements to keep your tax-exempt status?
• Do you need help with contracts, leases, or other agreements for your organization?
• Do you need guidance on accepting donations and grants?
• Are you unsure about tax laws and financial reporting for nonprofits in your state?
• Are you facing a lawsuit or legal dispute involving your nonprofit?
• Do you need help creating contracts for employees, volunteers, or independent contractors?
• Are you dealing with workplace disputes, terminations, or labor law compliance?

If you answered yes to any of these, a nonprofit attorney may be able to help.

How much does a nonprofit attorney cost?

What you'll pay depends on the kind of help you need. For simpler tasks, like drafting or reviewing bylaws or a contract, an attorney might charge a flat fee (a set price). For bigger or more complicated work, they'll usually charge by the hour.

Costs can also vary based on:

• How complex your legal matter is
• Where your nonprofit is located
• The type of work you need done

Hiring an attorney can feel like a big expense, especially on a nonprofit budget. But it can save you money in the long run by helping you avoid mistakes, penalties, and legal problems.

What should I expect when working with a nonprofit attorney?

If you're just getting started, a nonprofit attorney can help you choose a structure, explain what it takes to qualify for tax-exempt status, and walk you through the paperwork, including drafting or reviewing your documents and helping with the filing process.

If your nonprofit is already up and running, an attorney can help you stay on top of the rules that apply to you, from tax filings to employment laws, and figure out your next steps when something new comes up.