Not for Profit Organizations
At Lakelaw, we are involved in our communities. We often provide legal services to local not-for-profit associations for free as a matter of public service. Our lawyers have been volunteers and members of numerous not-for-profit associations over the years. So we’ve been called upon to help in many ways. And we use this expertise to help other voluntary organizations fulfill their mission. Since we are licensed in both Illinois and Wisconsin, we are particularly well suited to help not for profit organizations which operate both in Northeast Illinois and Southeast Wisconsin. Here are some of the services we offer in the not-for-profit sector:
- Organization
- Applications for tax-exempt status under Section 501(c)(3) or 501(a)(9) of the Internal Revenue Code
- Governance
- Compliance
- Contracts and litigation
- Bankruptcy and Reorganization
- Dissolution
- Development – Estate Planning
Case Study
Our client was organized as a not-for-profit corporation in the medical field under Illinois law in the 1990s. The client thought it was a tax exempt organization. However, over a period of 16 years, it had filed tax returns as a for-profit corporation. It never had obtained tax exempt status under section 501(c)(3) even though it was eligible for such status. The client faced bankruptcy owing to substantial penalties imposed by the Internal Revenue Service. Here’s what Lakelaw did:
- We worked with an accountant to prepare all necessary tax returns for prior years on form 990.
- We worked with the not-for-profit branch of the Internal Revenue Service to obtain a waiver of all back taxes and penalties
- We received a refund from the Internal Revenue Service of all back taxes and penalties paid prior to our having been employed.
- We assisted the not-for-profit to obtain 501(c)(3) status as an educational and scientific organization.
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