Practice Strengths

Baker Hostetler has a rich heritage in serving tax-exempt organizations, their officers and directors and families who support charitable causes.

The team’s experience encompasses all aspects of tax-exempt and charitable giving law—working with healthcare systems, trade associations, private foundations, civic organizations and community foundations, universities and other organizations to obtain and maintain their status as exempt from taxes in an increasingly regulated environment—as well as helping individuals and their families and other donors organize their assets to best meet their philanthropic goals.

Comprehensive, Unique Counsel for Tax-Exempt Organizations

As a national firm with one of the largest comprehensive tax practices that includes a group dedicated to representing tax-exempt organizations, Baker Hostetler advises a variety of organizations and national groups spanning a wide range of community, religious, educational, healthcare and other interests. We understand the myriad of regulatory and compliance challenges that they face, inclusive of establishing and maintaining 501(c)(3) status and all manner of ongoing operations and regulatory compliance. We counsel these groups on all operational aspects including reporting and tax obligations under state and federal laws.

• We address all interactions with tax authorities, from pre-organizational counsel to securing and maintaining tax-exempt status, as well as filing annual returns such as IRS Forms 990, 990PF and 990T and any controversies that may arise.
• We provide board and staff training and assist in the preparation of policies and procedures which help avoid operational pitfalls such as self-dealing and excess benefit transactions.
• We also provide counsel in unique and complex situations, including the relationship between non-profit organizations and their for-profit subsidiaries and sponsors.
• We assist organizations with their compensation, bonus/incentive and benefit plan matters to ensure compliance with relevant regulations.
• Our attorneys work closely with Baker Hostetler's legislative and policy team to ensure that a client’s best interests are fully represented before legislative and regulatory authorities. Often these two teams collaborate to serve as “eyes, ears and voice” on regulatory and legislative matters that can impact tax-exempt organizations.

Beyond compliance concerns, our attorneys advise organizations on the tax aspects of charitable contributions and other financial support programs such as endowment funds, planned giving or bequest programs, pooled income funds, charitable gift annuity programs, donor-advised fund programs, supporting organizations and charitable split interest trust agreements. We help organizations further the success of their mission by making their development professionals aware of all giving options and by providing training in the proper documentation of charitable donations and fiduciary issues. We also assist in the development of effective grant-making policies, fund operation programs and operational guidelines.

A Tradition of Serving Healthcare Clients

Our team has extensive experience with the healthcare industry. Attorneys have worked with not-for-profit hospitals and healthcare providers on matters as diverse as mergers and affiliations, the sale of assets to investor-owned corporations, the creation of joint ventures with investor-owned corporations, and establishing “conversion” foundations that result from the sale of tax-exempt healthcare systems. We also provide guidance to these entities and their subsidiaries during the IRS exemption application process and throughout each annual compliance cycle as well as through IRS and state audits and examinations.

Guiding Charitable Gifts and Planning

Our attorneys counsel individuals and families on sophisticated charitable funding techniques and other tax-related matters. We apply common-sense, state-of-the-art philosophies and strategies suited to our clients’ planning needs and charitable goals, without relying on risky or doubtful charitable devices often mass-marketed to wealthy families.

Our lawyers have formed and structured charitable trusts and family foundations, many now holding assets with substantial value. We work with clients to achieve maximum tax advantage through such tactics as:

• Obtaining and maintaining the charitable status of family foundations.
• Ensuring compliance with state and federal regulations on private foundation investments and operations.
• Advising family foundations regarding mission definition and multi-generational governance and succession issues.
• Augmenting the tax efficiency of large estates with sophisticated split-interest charitable trusts including charitable lead trusts designed to leverage available generation-skipping tax exemptions, as well as more traditional charitable remainder trusts.

In addition, we help clients establish annual gifting programs using charitable vehicles, which can be among the most effective ways to minimize estate taxes and protect family assets. Our lawyers emphasize creative planning and the use of trust vehicles to leverage our clients’ tax exclusions and credits. We seek full tax compliance in our giving strategies, and regularly secure Private Letter Rulings and other guidance from the IRS to allow effective and secure income, gift, estate and generation-skipping tax planning.

About the Team

Members of Baker Hostetler’s Tax-Exempt Organizations and Charitable Giving group build upon a history that started with the active leadership of Norman Sugarman, a former Assistant Commissioner of the IRS who was regarded by many as the “father” of many aspects of tax-exempt and charitable giving law.

Baker Hostetler’s Tax-Exempt Organizations and Charitable Giving attorneys are frequent lecturers and authors, and they actively participate in professional and legal organizations focused on tax-exempt organization and charitable tax planning issues. In addition, team members work within their communities as law school educators and as advisors for gift-planning boards of tax-exempt organizations of all sizes.