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IRC 501(c)(3) provides that an organization organized and operated exclusively for “charitable” purposes may qualify for exemption from federal income tax. The Service has recognized as charities certain types of organizations that engage in litigation. The purpose of this topic is to discuss the basic types of litigating organizations that apply for recognition of exemption under IRC 501(c)(3): (1) legal aid organizations; (2) human and civil rights defense organizations; (3) public interest law firms; and, (4) organizations that attempt to achieve charitable goals through the institution of litigation as a plaintiff.
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Nonprofit litigation involves the initiation of legal proceedings between two or more parties in order to resolve a dispute over matters related to the management or operation of a nonprofit organization. These disputes can involve anything from financial issues and conflicts with board members to contract disputes and allegations of misconduct by employees or volunteers. In these cases, it is important for the nonprofit organization to have an experienced attorney who understands the intricacies and nuances of this complex area. In addition, Daryl Reese Law Group provides its clients with advice about how best to tackle any potential problems before they become overly complicated. In cases that cannot be resolved through negotiation or mediation, the attorneys at Daryl Reese Law Group will utilize various forms of alternative dispute resolution (ADR) such as arbitration, mini-trials, and summary jury trials in order to resolve any outstanding differences between parties without going through costly and time-consuming litigation proceedings.
Overall, Daryl Reese Law Group is committed to providing its clients with sound legal advice and effective representation when involved with Nonprofit Litigation matters. Its experienced attorneys are knowledgeable about the complexities associated with non-profit organizations and are able to provide practical solutions that meet their clients' needs while still protecting their interests during negotiations and litigation proceedings alike.
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