HOW CHRIS SANDERS LAW PLLC IS READY TO HELP
April 6, 2022
I'm an activist who uses legal knowledge and experience to help others advance social justice issues in Louisville, in Kentucky, and really anywhere in the United States. I am active in law, labor, faith, and politics, and I got my start working with and for labor unions. I have been on the side of the working class ever since.
If you’re looking to establish a non-profit organization to advance worthy social issues — or you are already involved in such an organization — I am here to help you navigate the rules of the Internal Revenue Code so you maintain your tax-exempt status while pursuing your goals.
I am also ready to assist with regulatory compliance and disclosure requirements and help with issues of corporate governance so that you don’t overstep or misread the boundaries established by the Internal Revenue Service.
As directors, trustees, or managers of charities or tax-exempt organizations, you also bear a fiduciary responsibility to your donors and supporters. I can help you make sure you’re in compliance with financial reporting and accountability standards.
LAWS GOVERNING CHARITABLE & TAX-EXEMPT ORGANIZATIONS
Tax-exempt organizations are governed by section 501(c)(3) of the Internal Revenue Code. It cannot be an “action” organization, meaning that it cannot participate in any activity supporting or opposing any political candidate. It is also limited in any efforts to influence legislation: such activities cannot be a “substantial part” of its activities.
Such tax-exempt organizations typically stick to publishing position papers, hosting gatherings for discussions of issues, and some lobbying. The IRS warns, however, that “A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks the loss of tax-exempt status."
By contrast, some political organizations — which include fundraising groups, political action committees (PACs), and campaign committees — can't be supported by tax-exempt contributions. But it's even a little more complicated. Under IRC Section 527, well-constructed political organizations can enjoy a form of tax-exempt status if they do not expressly advocate for a particular candidate or coordinate with any politician’s campaign. They limit their activities to issue advocacy and voter mobilization. This area of the law requires careful support.