We’re Moving Our Offices August 1st!

The For Purpose Law Group, a law firm specializing in the representation of nonprofit, tax-exempt organizations and socially conscious businesses throughout Southern California, is pleased to announce the relocation of our offices to downtown San Diego on August 1st, 2013. Our new offices are located in the unique and historic Schiefer & Sons building, at 815 J Street, Suite 303, San Diego, CA 92101 - Read More

Business Fundamentals: Flexible Purpose Corporations

What are Flexible Purpose Corporations? UPDATE: In January of 2015, California revised the name of this corporate form to a Social Purpose Corporation. A Flexible Purpose Corporation (Flex C) is one of two new corporate structures that became available in California beginning January 1, 2012. The other corporate form that became available in 2012 was the Benefit Corporation. Flexible Purpose Corporations, like Read More

Automatic Revocation of Exempt Status

The requirements to maintain an organization’s tax exempt status are actually relatively straight forward. The organization must keep accurate financial records, file an annual information tax return and pay any applicable taxes from “unrelated business income,” and avoid engaging in prohibited activities. Making sure that your organization filed the appropriate annual return every year is an absolute necessity Read More

Requirements for Maintaining your Tax-Exempt Status

After receiving your tax-exempt status from the IRS and the state of California, many nonprofits breathe a sigh of relief and assume that their tax exempt status is secured indefinitely. In fact, preserving on organizations’ tax exempt status requires the organization to undertake certain actions and refrain from engaging in other actions. Specifically, to maintain tax exempt status an organization must: Keep Read More

Tax Exemption under IRC 501(c)

The Difference Between 501(c)(3), 501(c)(4) & 501(c)(7) Selecting the proper tax structure for your organization will have a significant impact on the activities you can undertake, how the organization is operated and what transactions are considered tax exempt for the organization and tax deductible for your donors. Section 501(c) of the Internal Revenue Code lays out specific organizational definitions and Read More

IRS Admits Targeting Conservative Orgs

The Internal Revenue Service is supposed to act in a completely nonpartisan manner when examining exempt organizations, but now they're in quite a bit of hot water for inappropriately flagging conservative political groups for additional reviews during the 2012 election to see if they were violating their tax-exempt status. Organizations with specific terms on their exemption applications including "patriot" and Read More