As part of our commitment to public service, Schneiders & Associates, L.L.P. is proud to serve tax-exempt organizations and foundations throughout California. We deliver comprehensive legal counsel in all aspects of nonprofit law, including governance and regulation. Our goal is to provide practical solutions and legally sound strategies for nonprofit management and to minimize the liabilities your organization’s Board of Directors faces in today’s tough regulatory environment. We work closely with nonprofit officers and management teams to develop ironclad legal documents specifically tailored to each organization’s unique needs.

Nonprofit entities face certain legal issues unique to their organizational structures and charitable missions. Your organization needs and deserves experienced legal support to overcome the hurdles imposed by federal and state regulations, maintain efficient operations, and meet potential challenges as they arise. While most of our clients are exempt from federal taxation as 501(c)(3) organizations, we represent many other tax-exempt organizations. This includes social welfare organizations exempt under 501(c)(4) and trade associations exempt under 501(c)(6).

Common Challenges for California Tax-Exempt Organizations

From regulatory compliance to fundraising, nonprofit organizations must tackle numerous hurdles to achieve their goals. Here are some common challenges that tax-exempt organizations face in California and throughout the United States:

  • Maintaining Tax-Exempt Status: To maintain tax-exempt status in California, nonprofits must comply with specific federal and state regulations. This includes filing annual reports with the IRS, submitting returns to the California Franchise Tax Board, and completing the RRF-1 form required by the California Attorney General’s office. Nonprofits must avoid substantial lobbying activities and ensure that tax-exempt earnings do not benefit private individuals. Failing to adhere to these regulations can result in the loss of tax-exempt status, leading to significant financial penalties and operational challenges.
  • Governance and Compliance: Effective governance is essential for any nonprofit. Organizations must create and follow bylaws, hold regular board meetings, and ensure board members fulfill their fiduciary duties. Nonprofits must also comply with state and federal laws regarding fundraising, employment, and privacy. Inadequate governance can lead to legal issues and damage the organization’s reputation.
  • Fundraising Regulations: Fundraising is essential for nonprofits, but it’s governed by strict state laws. In California, organizations must register with the Attorney General’s Registry of Charitable Trusts before soliciting donations and annually report their financial activities. Failing to comply with these regulations can result in penalties, loss of donor trust, and a significant impact on the nonprofit’s fundraising capabilities.
  • Employment Law Compliance: Nonprofits must follow employment laws just like any other employer. This includes adhering to Califonia minimum wage laws, providing appropriate benefits, and ensuring a non-discriminatory workplace. Misclassifying employees as volunteers or independent contractors can result in legal disputes and financial liabilities.
  • Intellectual Property Issues: Protecting intellectual property (IP) is another vital concern for many nonprofits, especially those that produce educational materials, host events, or create unique content. Organizations must ensure they have the right to use certain IP and should register trademarks or copyrights as necessary. Failure to protect organizational IP can lead to legal battles and a loss of valuable resources.
  • Contracts and Agreements: Nonprofits often enter into various contracts for services, grants, and partnerships. Entities must carefully draft these agreements to protect their organizational interests. Poorly written contracts can lead to disputes, financial losses, and strained relationships with key partners.
  • Data Privacy and Security: Nonprofits collect and manage personal information from donors, members, and beneficiaries. Compliance with data protection laws, such as the California Consumer Privacy Act (CCPA), is necessary to safeguard this information. Data breaches can result in legal penalties and loss of trust from stakeholders.

An experienced nonprofit lawyer can support your organization by offering comprehensive legal guidance tailored to your unique requirements. They can help your nonprofit comply with federal and state laws, draft and review essential documents, and provide strategic advice on governance and operational issues. They can also assist with risk management to help your organization avoid legal pitfalls and disputes. By working closely with a lawyer who understands California’s nonprofit sector, your organization can handle legal challenges more effectively, protect your assets, and focus more on fulfilling your mission and achieving your goals.

Services We Provide for California Nonprofits

At Schneiders & Associates, L.L.P., we help nonprofit organizations in Oxnard, Westlake Village, or Ventura County with all aspects of nonprofit creation, organization, management, and growth. The services we provide to California nonprofits include the following.

Formation and Operations

  • Assisting you with nonprofit formation, including preparation of all organizational documents, such as articles of incorporation, bylaws, and trusts
  • Advising you on operational issues related to running your nonprofit
  • Helping you address your organization’s governance and policy issues
  • Overseeing charitable solicitation registrations and real estate transactions
  • Advising you on and reviewing new and existing fundraising agreements
  • Drafting corporate sponsorship and charitable sales promotion agreements
  • Restructuring and terminating exempt organizations

Tax Assistance

  • Establishing IRS tax-exempt status by preparing and filing IRS Forms 1023 and 1024
  • Annual filing of IRS Form 990 (your nonprofit’s annual tax information return)
  • Representing you in IRS audits and tax controversies, including in tax court

Regulatory Adherence

  • Explaining state laws regarding nonprofit legal status and regulatory compliance
  • Determining and explaining the fiduciary duties of directors and officers
  • Handling and interpreting policies related to conflicts of interest
  • Reviewing your investment policies and complying with UPMIFA

Labor Management

  • Assisting you in planning and administering executive compensation packages
  • Helping you manage independent contractors and other employment concerns
  • Determining liabilities of paid and unpaid personnel, including volunteers and interns
  • Planning and implementing workplace campaigns for employees and volunteers

Contact Our Skilled Nonprofit Attorneys

Nonprofits have a special mission and must pay particular attention to the economics of running their organizations. Whether you are considering forming, serving, or growing a nonprofit organization, Schneiders & Associates, L.L.P. invites you to contact us with any questions or concerns. We can provide the answers you need and start developing intelligent solutions for your organization as soon as you get in touch with us for your initial consultation.