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Tax Exempt Organization

Our attorneys assist clients who have or are forming nonprofit organizations on issues including entity formation, unrelated business income, and charitable giving.

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Tax Exemption Lawyers For Nonprofits in Iowa

Our attorneys practicing Nonprofit Law assist clients who are both forming a nonprofit organization as well as those with existing non-profit status. We provide sound and knowledgeable legal counsel and enable young nonprofits to begin from a solid starting point so they may make informed decisions on entity formation, unrelated business income, charitable giving, and more. We also provide knowledgeable legal advice for established nonprofits, and experienced, effective litigation in the case of a legal dispute.

How to be Tax-Exempt Under 501(c)(3)

A nonprofit organization does not automatically become exempt from federal or state taxes. To apply for exemption, the nonprofit must meet certain requirements according to both the IRS and the State of Iowa. This includes a strict mandate that no one of the private shareholders or individuals may profit from the business; or attempt to influence legislation; or participate in any political campaign activity.

501(c)(3) of the Internal Revenue Code states that an organization must be organized and operated exclusively for exempt purposes. These are listed as:

  • religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.

Also, charitable purposes are considered for exemption. This includes organizations that have the following endeavors:

  • relief for the poor, the distressed, or the underprivileged
  • advancement of religion
  • advancement of education or science
  • erecting or maintaining public buildings, monuments, or works
  • lessening the burdens of government
  • lessening neighborhood tensions and combating community deterioration
  • battling prejudice and discrimination
  • defending human and civil rights
  • working to improve juvenile delinquency

For a detailed discussion with a knowledgeable nonprofit law attorney, contact Phelan Tucker Law LLP. Our non-profit law attorneys can assist you with understanding the scope of these important laws. There are extensive tax law implications, as well as bookkeeping and operations regulations, that must be abided. Contact us today to speak with an experienced nonprofit law and litigation attorney in Iowa.

Call our office today to speak with an attorney who is experienced in nonprofit law and litigation. We proudly serve the Iowa City greater area, including Iowa City, Davenport, Cedar Rapids, Mt Pleasant, and Des Moines. Find out how we can help you with all of your business legal needs.