If you’re a nonprofit organization in Chicago in need of legal or business advice, you’ll want to make sure you’re working with a lawyer who understands the unique regulations that govern the operations of your particular type of organization. From tax considerations to nonprofit incorporation, a professional lawyer who can provide efficient counsel is an invaluable asset for you to leverage. UpCounsel offers a broad network of experienced lawyers and business attorneys who have the expertise to help. Read on to get some insight into the top five things your nonprofit should consider to be successful in the greater Chicago area.

1. Qualifying as a Tax-Exempt Corporation: To qualify as a nonprofit tax-exempt organization in the State of Illinois, and consequently enjoy the ability to receive donations, your organization must be registered as a nonprofit corporation with the Illinois Secretary of State. Your lawyer can ensure that any paperwork filed is done correctly in accordance with the local laws before you apply for any federal tax exemptions on the IRS website.

2. Registering to Solicit Donations: As a nonprofit registered in the State of Illinois, you will be required to register in each city and municipality where you are located and plan to solicit donations in. To do this, you must register with the local clerk or the state attorney general. Your business lawyer can help to guide you through this process, as well as other legal and compliance requirements associated with your operations.

3. Complying with the Charitable Trust Act: The Charitable Trust Act regulates solicitation and management of funds on behalf of a nonprofit operating in Chicago. This would include any activities around collecting donations, setting up grant programs, creating employee fundraising, and other activities beyond. Your attorney will help you create protocols for keeping track of contributed funds, provide the necessary paperwork for fundraising campaigns, and ensure you have proper structure in place for financial management.

4. Working with an Auditor: To comply with regulations from the State of Illinois, the IRS, and other local jurisdictions, you must also conduct an audit of your financial statements on a regular basis. An annual audit is recommended to ensure accuracy and to provide transparency in your organization’s activities. UpCounsel’s attorneys have experience helping their clients to select the right auditor and to navigate the audit process.

5. Applying for Tax-Exempt Status: Once you have all the necessary paperwork in place, and have complied with the Charitable Trust Act, you can apply for tax-exempt status from the IRS. This will ensure that your organization receives the tax-deductible donations from donors and sponsors. UpCounsel offers tax attorneys and non-profit specialists who can help you to submit the necessary papers for tax exemption.

For effective counseling tailored to the requirements of your nonprofit, UpCounsel’s vast network of experienced lawyers will match you with the right client-rating attorneys to assist you in whatever capacity you need. Need a one-time consult or an entire freelance legal department? Put your trust in UpCounsel and their experienced attorneys to provide cost-effective, high-quality legal services. With the amazing results UpCounsel can provide and the expedient assistance of their attorneys, you can get peace of mind knowing your nonprofit is properly taken care of.




Tax Considerations