Overview
Not only do nonprofit organizations control a large percentage of our nation's economic activity, but they also create and preserve a significant portion of our cultural wealth, as well. From the great private universities to arts organizations (symphony orchestras, dance companies, art museums, etc.) and from the majority of U.S. hospitals and health care systems to the private foundations that support all of these activities, nonprofits literally shape our world.
In recent years, however, nonprofits have been involved in corrupt practices and fraudulent schemes, prosecuted for their connections to organizations that threaten national security, subjected to Congressional hearings and reform legislation, and placed under increasingly close regulatory scrutiny. What are the legal controls on these organizations? And are the legal rules up to the task of ensuring that the public interest is served by nonprofits?
This three-credit course surveys the basic corporate-governance laws and federal and state tax-exemption laws that apply to nonprofit organizations. We will also consider applicable limitations on political activity (e.g., campaign activities and lobbying), as well as the legal status of private membership associations and the application of antitrust laws and the First Amendment to nonprofit organizations.
Although neither Business Enterprise nor Income Taxation is required for this course, either or both would certainly be helpful.
This course qualifies for Practical Skills credit. Practical skills activities will include drafting a certificate of formation for a nonprofit corporation, bylaws, and application for recognition of exemption for either a real or fictitious client.
Scheduling
No class on Thursday, June 5.
Makeup class scheduled for June 2, 6-7:40 p.m.
First assignment
Casebook [Phelan & Desiderio, Nonprofit Organizations: Law and Policy (2d ed., Thomson/West 2007)]: pp. 1-46
Handout: "Exemptions for Charities Face New Challenges"
