The nonprofit sector has embarked on a new era of possibility. Nonprofits now, in addition to building a donor base, are exploring more business-like strategies for generating funds, while solving a problem, meeting a need, or creating jobs. New questions arise with these venture-based activities: How to navigate a government contract? Establish a subsidiary or a joint venture? Remain tax and status compliant?
Addressing the legal issues in the progress towards one’s mission depends on the trust, competency, and confidence embodied by all players – including your lawyers. We know the value of honesty and responsiveness. We do not like to see a creative solution bogged down by potential risks, fear of the unknown, being overcharged or under-informed.
Have a question? Reach out to us.
- Provide opinion letters on the structure and purpose of program related investments.
- Incorporate and pursue tax-exempt status for new nonprofits engaged in global programs for challenged communities assisting in moving from crisis relief to stabilized resources.
- Provide legal review of nonprofit and for-profit related entity structures dedicated to mission purposed investments.
- Created a nonprofit structure for a $25 million mixed equity and debt fund for investing in and preserving affordable housing in economic centers that promote upward economic mobility for low- and moderate-income residents
- Assisted with a $10 million permanent capital (“evergreen”) fund for providing Sharia-compliant loan-type finance to small- and medium-size enterprises in the Horn of Africa region, with a purpose of facilitating stable economic opportunities for the region’s inhabitants.
- Worked on a $1 million (first round – in development) evergreen fund to provide loans and recoverable grants for community-centric economic development projects globally, with an alternative advisory counsel structure to ensure that borrowers and stakeholders affected by fund activities have a participatory role in the fund’s governance and activities.
- Advised an investor client on investment in $100 million fund sponsored by a prominent global foundation.
Specific ways we can support your nonprofit or social enterprise:
We help you determine the appropriate legal entity and domicile for your organization, and handle the necessary filings with state, federal and international authorities. We draft the governing documents for the organization.
We also assist non-profit organizations with obtaining tax-exempt status and staying in compliance with exempt entity regulations. We advise on program related investments, cause marketing campaigns, and assist commercial co-venturers with state registration and disclosure requirements.
We work with mission-driven enterprises, both for-profit and nonprofit. We help organizations choose the best legal structure to maximize accomplishment and protection of their mission, including paired for-profit and non-profit entities, or new forms such as a benefit corporation or L3C. We assist non-profits involved in hybrid structures to navigate governance issues, safeguard their tax-exempt status, and plan for income derived from business activities.