Tax Exempt Entities
Charities and other tax exempt organizations rely on their special status to avoid the burden of taxes and maximize the resources available for their primary mission. However, obtaining and maintaining tax exempt status requires a significant amount of effort and expertise. New and existing projects need careful planning and maintenance or can threaten or completely disqualify the entity’s tax exempt status. And even if a tax exempt entity correctly maintains its exemption, certain types of investments and business activities remain taxable despite the entity’s exemption unless properly structured and managed.
Specific things I have done for tax exempt entities include:
- Plan and form new tax exempt entities;
- Restructure existing tax exempt entities including the formation of supporting organizations, joining group exemptions, or merging ancillary charities into the larger organization;
- File for and obtain tax exempt status from both federal and state taxes;
- Remedy denied or endangered applications for tax exemption;
- Remedy revoked tax exemption, whether exempted for failure to file or due to non-exempt activities;
- Form independently tax exempt joint ventures between multiple existing tax exempt entities;
- Structure investment by a tax exempt entity in a potentially taxable business or investment vehicle; and
- Structure new projects or programs of tax exempt entities to protect and maintain tax exempt status.
If you are planning a charitable or other potentially tax-exempt project, are having trouble with your application for tax exemption, or have an existing tax exempt entity, I would love the opportunity to discuss how I can help you. Please schedule a consultation so that we can discuss how best to achieve what you want without the negative tax consequences you don’t.