Nonprofit Organizations

/Overview

There are 1.6 million tax-exempt organizations in the country, from religious institutions and cultural centers to disaster relief agencies. At Nixon Peabody, we believe having a positive impact on the world is central to the success of any business—a belief that is reflected in our mission. Working with nonprofits is one way to bring this mission to life. Our team serves nonprofits in all areas vital to their operation, including structuring, board governance, and tax-exemption status. We’ve assisted charity organizations shape their fundraising strategies. We’ve advised for-profit companies on their relationships with their tax-exempt affiliates, including foundations, scientific research organizations, and cultural institutions. And we’ve acted as counsel for numerous community foundations regarding investment decisions and endowment expenditures. Whatever the issue, Nixon Peabody brings knowledge and sensitivity to our nonprofit clients and the communities they serve.

/Representative Experience

• Worked with a nonprofit management company developing affordable housing projects to form a new charitable entity to hold investment assets and to strategically deploy the assets for the benefit and expansion of their entities. 
• Representation of numerous community-based nonprofit organizations, colleges and universities, hospitals, and community foundations on all aspects of corporate governance, tax-exempt status under Code Section 501(c)(3), and charitable giving.
• Advised on the formation of a nonprofit research institute dedicated to medical and scientific research related to women’s health, sports, and performance.
• Represented a nonprofit in the sale of a substantial portion of its intellectual property assets to a for-profit company, including negotiating with the California Attorney General to obtain approval of the sale transaction.
• Advise clients with respect to compliance with the particular form of UPMIFA adopted in the jurisdiction and on investment policy requirements under UPMIFA, including computation of spending rate for endowments.
• Served as outside general counsel for a $1.5 billion grantmaking family foundation, including providing advice regarding grantees, internal governance, audit and investment committee activities, for-profit subsidiaries, acts of self-dealing, excess business holdings, and succession planning.
• Acted as outside general counsel for a family foundation resulting from the split of a $300 million family foundation, including negotiating a charitable distribution agreement, implementing succession planning for the next generation, analyzing reasonable compensation and administrative expenses, and fulfilling ongoing reporting obligations.
• Represented a local branch of a nonprofit fundraising organization for more than 35 years and currently serve as outside general counsel. Our services include general corporate and tax advice, contract review, grant policies and procedures, employment and labor advice, pension plan, estate and trust, real estate—leases, purchase/sale of real property, and gift acceptance. 
• Advised national organization in connection with a complete governance review, including addressing inconsistences in policies as well as adopting policies to comply with applicable state law as well as requirements for tax-exempt organizations. 
• Advised a healthcare center regarding restricted funds including review of gift instruments, possible release of restrictions, and alternative use of same.

/Recognition

• Nixon Peabody has been named a Tier 1 firm in Washington, DC for Nonprofit / Charities Law by U.S. News – Best Lawyers® “Best Law Firms” in 2023.