Nonprofit, tax exempt and 501(c)(3) Organizations
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Do you need a nonprofit tax attorney to help form your organization? Did its nonprofit status get revoked?
Applying for and maintaining nonprofit tax exempt status can be complicated. Nonprofit and tax-exempt organizations, such as a 501(c)(3), must comply with endless federal and state laws so they do not jeopardize their tax exempt status.
The Board of Directors/Trustees must follow certain fiduciary rules to avoid personal liability, even if they are volunteers.
Finally, the nonprofit organization must comply with all corporate requirements of a traditional company, PLUS navigate the Internal Revenue Code requirements. Attorney Laura Anastasia Brown provides nonprofit legal services with decades of experience throughout the Boston area and Massachusetts.
Why did the IRS revoke our tax-exempt status?
Can our organization still continue to fund raise? Will we have to pay taxes now?
Why does the Board of Directors/Trustees need insurance if we are just volunteering?
What happens if our 501(c)(3) organization makes a profit?
What federal and state documents do we have to file every year so we don’t lose our nonprofit tax exempt status?
Attorney Laura Brown counsels nonprofit organizations to achieve and maintain its tax-exempt status throughout the greater Boston area and Massachusetts.
Entity Formation
Nonprofit tax attorney Laura Brown provides legal services to nonprofit organizations including:
- Determining which nonprofit tax exempt status is appropriate, such a 501(c)(3).
- Forming a new nonprofit organization and applying for tax-exempt status with all government agencies – federal, state and local.
- Preparing and filing IRS Form 1023 Application for Recognition of Tax Exemption
- Drafting Articles of Organization, By Laws, contract, real estate property tax exemptions
- Reinstating Tax Exempt status after an IRS Revocation
Continuing Advice
Nonprofit lawyer Laura Brown is a tax attorney in the Boston area. Her continuing advice includes:
- Board of Directors/Trustees governance practices and procedures
- Board duties, liabilities and meetings
- Negotiation and drafting contracts
- Fundraising and spending
- Yearly returns for the state and federal agencies.
Don’t let the complex IRS requirements discourage your organization’s goals. Laura Anastasia Brown is a nonprofit tax attorney with decades of experience to help you.
We Help More Than 501(c)(3) Nonprofits
Most people hear “nonprofit” and think “charity.” But tax-exempt and nonprofit organizations come in many forms—and the rules can change a lot depending on your mission, revenue streams, and activities.
Attorney Laura Anastasia Brown advises a wide range of nonprofit and tax-exempt entities, including organizations that are educational, member-based, advocacy-focused, social/recreational, employee-benefit related, veterans-focused, and political in nature.
Which Type of Tax-Exempt Organization Are You?
501(c)(3) – Charitable, educational, religious, and similar public-benefit organizations (typically applies using IRS Form 1023 or 1023-EZ).
501(c)(4) – Social welfare / advocacy organizations (commonly applies using IRS Form 1024-A).
501(c)(6) – Business leagues, trade associations, chambers, and professional associations
501(c)(7) – Social and recreational clubs (including country clubs, private member clubs, hobby clubs)
(501(c)(8) & 501(c)(10)) – Fraternities, sororities, and lodge-based organizations.
(501(c)(9)) – Voluntary employee beneficiary associations.
(501(c)(13)) – Cemetery companies / organizations operated for burial purposes.
501(c)(19) – Veterans’ organizations
Section 527 political organizations – Political organizations may need to notify the IRS via Form 8871 (depending on circumstances).
501(c)(6) Business Leagues, Trade Associations & Chambers
Maybe your organization isn’t a charity. Maybe you’re a trade group, a professional association, or a chamber of commerce.
You still have rules to follow. And if you get them wrong, it can get messy.
Is this you?
- You collect membership dues and you’re not sure what’s taxable.
- You run events, sponsorships, trainings, or conferences.
- You’re growing fast and your bylaws/governance haven’t kept up.
- You’re doing “nonprofit things,” but your setup is basically a patchwork.
Questions I hear all the time
- “Can we take sponsorships without creating tax problems?”
- “Are dues deductible?”
- “Can we pay vendors, speakers, or board members?”
- “What do we have to file every year so we don’t lose our status?”
How I help 501(c)(6) organizations
- Help you choose the right structure and exemption category for what you actually do
- Draft or clean up bylaws, policies, and governance basics
- Review contracts for events, sponsors, vendors, and partnerships
- Keep you on track with ongoing compliance and annual filing requirements
- Spot issues early—before the IRS turns them into a bigger problem
501(c)(7) Social & Recreational Clubs (Including Country Clubs)
A 501(c)(7) is usually a social or recreational club.
Think: country clubs, dining clubs, yacht clubs, hobby clubs, and member-only social organizations.
These organizations can seem simple… until revenue and non-member activity enter the picture.
Is this you?
- You want to rent the space out for events.
- Non-members attend functions, use the facility, or pay fees.
- You’ve added programs, fundraising, or new revenue streams.
- Your board is dealing with disputes, unclear authority, or “we’ve always done it this way.”
Questions I hear all the time
- “How much non-member income is too much?”
- “Can we rent the clubhouse out?”
- “Do we need to change our governing documents?”
- “What happens if we miss a filing or our records are incomplete?”
How I help 501(c)(7) organizations
- Structure the organization properly from the start (or fix it when it’s already operating)
- Draft and revise bylaws, policies, and governance procedures
- Review vendor and facility-use contracts (events, rentals, programs)
- Build a compliance plan so deadlines and recordkeeping don’t spiral
- Provide a “compliance reset” when things have fallen behind
Formation + IRS Filings (Built for Your Actual Activities)
Your entity should be designed around real-world operations: membership dues, fundraising, events, sponsorships, grants, advocacy, and any revenue-generating programs.
Formation and setup support may include
Structuring the organization to match your purpose and planned activities (not just “checking the nonprofit box”)
Drafting and filing formation documents (Articles/Certificate, bylaws, core governance policies)
Preparing the appropriate IRS exemption application (for example, 1023/1023-EZ for many 501(c)(3)s, or 1024-A for many 501(c)(4)s)
Setting up compliance workflows so annual filings don’t become a recurring fire drill
Ongoing Compliance (Where Many Nonprofits Get Hurt)
Tax-exempt status isn’t “set it and forget it.” Many problems come from routine issues: missed filings, unclear board processes, revenue activities that drift, or fundraising that doesn’t match the rules for your exempt category.
Ongoing counsel may include
Board governance: roles, fiduciary duties, meeting minutes, and practical decision-making processes
Contracts and vendor agreements (including event venues, sponsorships, consultants, and partnerships)
Fundraising and spending policies that match your exempt status
Annual filing guidance (federal and state), plus “what changed this year?” check-ins
Unrelated business income (UBI/UBIT) risk spotting and filing guidance (including when Form 990-T may apply)
It’s Not Just the IRS: Massachusetts Nonprofits Answer to the Attorney General
Many nonprofit leaders believe compliance starts and ends with the IRS. In Massachusetts, that assumption can cause serious problems.
Nonprofits operating in the Commonwealth are also regulated by the Massachusetts Attorney General’s Non-Profit Organizations / Public Charities Division.
This office confirms whether an organization is in good standing and plays a direct role in whether the Massachusetts Department of Revenue recognizes or maintains state tax-exempt status.
That means:
Filing a Form 990 is not enough
Federal tax-exempt status does not guarantee state protection
Missed state filings or governance issues can trigger enforcement—even if the IRS has never contacted you
The Attorney General’s office has real authority. They can investigate nonprofits, demand records, freeze assets, and take action against organizations and individuals who fall out of compliance.
Laura Anastasia Brown helps Massachusetts nonprofits understand and manage both federal and state-level requirements—before small issues turn into serious exposure.
Situations We Commonly Help Fix
If you’re already operating, we can step in to clean up issues and get you back on stable footing.
Tax-exempt status revoked or threatened (and you need a plan to reinstate)
You formed as “a nonprofit,” but your activities fit a different category than you originally chose
You want to add revenue activities (events, rentals, sponsorships, programs) and need to understand tax and reporting implications
You’re dealing with internal governance concerns: conflicts, documentation, board disputes, or unclear authority
You need a compliance reset so deadlines, filings, and recordkeeping are predictable—not stressful
Seeking professional help can save you time and money
Laura Brown is a successful business owner as well as a corporate and tax attorney. She understands what is needed to help you, your family and your business.