Tax Exempt Organizations

Charitable organizations that are starting out face major challenges from the lengthy, complicated, and time-consuming application process for obtaining tax-exempt status from the Internal Revenue Service (IRS).

For tenured charities, failing to comply with federal tax laws can result in severe monetary penalties, sanctions from the IRS, and even jeopardize their tax-exempt status. For more than 50 years, McGrath North has guided newly formed charitable organizations through the IRS process of recognizing their status as a 501(c)(3) organization and in the complexities involved in the daily operation of a charity. We also counsel all of our charitable clients on avoiding unrelated business income, excise taxes on prohibited transactions, IRS penalties, and minimizing applicable tax liabilities and on corporate policies governing conflicts of interest, the making of grants, and the use of charitable funds.

Our advice is based on a detailed and operational understanding of our various charitable clients and their philanthropic goals. We also provide advice with respect to charitable giving strategies and techniques to help clients grow their endowments, including charitable trusts, charitable annuities, and IRA rollover programs.

Industry Experience: Public charities and tax-exempt organizations such as schools, churches, religious organizations, clubs, universities, not-for-profit hospitals, community foundations, trade organizations, supporting organizations and private foundations.