Tax-exempt Organizations

Covington represents tax-exempt organizations on a wide variety of sophisticated legal matters, including tax, corporate governance, political law and employment issues. Our clients include organizations exempt under numerous provisions of the Internal Revenue Code, such as sections 501(c)(3) (both public charities and private foundations), 501(c)(4) (social welfare organizations), 501(c)(6) (trade associations), 527 (political action committees), and organizations with federal charters granted by the U.S. Congress, including governmental and quasi-governmental organizations. And we spend significant time advising exempt organizations on their commercial and other relationships with for-profit entities, both affiliates and third parties.

We regularly represent tax-exempt organizations, boards, and committees—as well as individual directors, officers, trustees, and fiduciaries—in a variety of corporate governance matters specific to nonprofit organizations, including developing and amending bylaws and committee charters, as well as advising on conflicts of interest, fiduciary duties, board and committee operations, and compliance with federal and state regulations.

Capabilities

• Advising on the creation and operation of tax-exempt organizations to ensure that they are in compliance with applicable laws
• Identifying and resolving unrelated business taxable income risks
• Advising on corporate sponsorships of tax-exempt organizations
• Structuring for-profit subsidiaries of tax-exempt organizations
• Advising on joint ventures between tax-exempt and for-profit enterprises
• Reviewing fundraising and grant agreements
• Developing strategies for engagement with nonprofit organizations outside of United States
• Representing tax-exempt organizations before the Internal Revenue Service, Treasury, and Congress