Law of Nonprofit Organizations

Catalog description

This seminar will cover the organization and operation of nonprofit organizations. We will primarily discuss the organization, operation, governance and taxation of 501(c)(3) organizations under state and federal law. We will also discuss 501(c)(4) social welfare organizations and 501(c)(6) business leagues. We will begin with the background and policy of the U.S. tax-exempt sector. We will discuss why someone might want to form a nonprofit and some alternatives. We will then examine the state and federal requirements for forming a nonprofit organization and obtaining tax-exempt status. We will explore the fiduciary obligations of boards of directors and trustees. Issues will include limitations on lobbying and campaign activity, avoiding private foundation status, commercial activity and unrelated business income tax, and joint ventures between nonprofits and for-profit entities. The final few weeks will be devoted to emerging issues in the nonprofit sector. Topics may include the recent challenges of obtaining tax-exempt status for open source software projects, whether a U.S. nonprofit can do a blockchain token sale (ICO), and hybrid and international structures. In addition to the assigned reading, we will have assigned discussion questions for class. Students should come to the seminar prepared to discuss those questions. The final exam will be take home. The professor will provide general introductions to federal income tax issues and general business association laws in advance of covering the relevant materials.