Charitable Organizations and Nonprofit Formation
Foundations, public charities and giving vehicles for managers and their families
A structure for giving
Many of our clients reach a point where they want a structure for giving: a private foundation funded from a liquidity event, a public charity built around a cause, or a donor-advised fund that keeps things simple. Each has different rules on control, payout, deductibility and reporting, and the right choice depends on how much you plan to give, how involved you want to be and whether others will contribute. We have advised charitable fund advisers for years, and we bring the same approach to the organizations themselves.
We form the organization, obtain its tax-exempt status and set up the governance that keeps it compliant.
What is a charitable organization?
A charitable organization is an entity organized and operated for purposes the tax law recognizes as exempt, most often under Section 501(c)(3). A public charity draws support from the public or carries on charitable programs directly; a private foundation is typically funded by one family or company and makes grants to others. Both must apply to the IRS for recognition of exemption, adopt governance policies, file annual information returns and avoid private benefit to insiders. A donor-advised fund is not a separate organization but an account at a sponsoring charity, which is why it's the quickest option when control over grants is enough.
What we do
• Form the nonprofit corporation and draft its bylaws and conflict-of-interest policy
• Prepare and file the application for recognition of tax-exempt status
• Advise on private foundation rules, including self-dealing, minimum distributions and excess business holdings
• Set up board governance, grant-making procedures and annual compliance calendars
Ready to formalize your giving?
Tell us what you want to support, how much and how hands-on you want to be, and we'll recommend a vehicle and quote a flat fee. Or call +1 (202) 556-4455.