Webcast: Maximizing Nonprofit Impact: Key Considerations in 501(c)(3) and 501(c)(4) Affiliations

NEO Principal Erin Bradrick and Carrie Garber Siegrist of Faegre Baker Daniels LLP, Washington, D.C. are presenting a webcast for American Law Institute Continuing Legal Education on Maximizing Nonprofit Impact: Key Considerations in 501(c)(3) and 501(c)(4) Affiliations on Tuesday, March 26, at 9:30 – 11:00 am PT / 12:30 – 2:00 pm ET. You can register here.

Why You Should Attend

In the world of tax-exempt organizations, 501(c)(3) organizations have the comparative advantage of being able to accept deductible charitable contributions. However, they are subject to certain restrictions on their activities, including a prohibition on political campaign intervention and a limitation on lobbying activities. On the other hand, 501(c)(4) organizations have broader latitude, particularly in these key areas for furthering a nonprofit’s mission. 

Utilizing a structure of affiliated 501(c)(3) and 501(c)(4) organizations – as many leading tax-exempt organizations do – can be a powerful means of enhancing impact and furthering an organization’s mission. Both 501(c)(3)s and 501(c)(4)s are exempt from federal income taxes, but the rules that apply to them differ. Furthermore, failure to adhere to certain practices may result in the activities of an affiliated 501(c)(4) being imputed to the 501(c)(3) which, in the worst case, may result in jeopardizing the tax-exempt status of the 501(c)(3) organization. 

If you represent nonprofit organizations or serve on a nonprofit board with a 501(c)(3)/501(c)(4) affiliated structure, it is important to develop a strong understanding of the rules applicable to each category of tax-exempt organization and of the practical considerations influencing such affiliations.

What You Will Learn

During this webcast, you will learn some of the applicable rules and considerations in order to strengthen these affiliations to allow for compliance in a complex area of the law. This program will provide an overview of the general rules that apply to organizations that are exempt under Sections 501(c)(3) and 501(c)(4), respectively. With that general background, our experienced faculty will address practical considerations arising in the formation and continued operation of such affiliated tax-exempt entities, including:

* Control and governance issues

* Sharing staff and other resources

* The flow of funds between organizations and coordinated activities

* Notable recent rulings and developments in this area 

With an understanding of the rules, and proper legal counsel, 501(c)(3)/501(c)(4) affiliated structures may feel empowered to operate the affiliation in a way that maximizes the effectiveness and efficiency of the organizations.