A foundation is a nonprofit organization with a charitable purpose, typically organized as a corporation under state law. Foundations can have a range of purposes, including charitable, religious, educational, or literary. An individual or family often endows foundations with assets such as stocks and bonds, art collections, and real estate to generate income for their activities.
People usually think of this type of organization when they hear the term “foundation,” but other types of nonprofits can qualify as foundations in some areas. For example, community foundations are nonprofit corporations that collect money from many donors and distribute it to charities in the donor’s geographic community. Some states also consider certain mutual benefit organizations to be foundations. These include labor unions and alumni associations, where membership is a source of professional networking and a way to stay engaged with former colleagues.
What Are the Legal Concerns When Creating a New Foundation?
A new foundation needs guidance and expertise from a legal advisor in drafting the necessary documents that will allow it to operate, including mission statements, bylaws, and tax-exempt status. An experienced foundation start-up attorney will make sure that the organization’s mission and the way it operates fulfill the foundation’s goals. A lawyer will also need to determine which type of foundation best suits the founders’ intent for their charitable endeavor.
An attorney’s role is crucial during this process because they can help determine if all the requirements are met and then draft the necessary documents for the new organization to be born.
What are the Legal Documents for Foundation Start-Ups?
Legal documents are an important aspect of starting a foundation. These documents define how the foundation is structured legally and its rights.
Legal documents for foundation start-ups include bylaws, articles of incorporation, trademark applications, non-disclosure agreements (NDA), and employment contracts. The bylaws are usually established before the articles of incorporation to outline the rules for how shareholders will act regarding voting at meetings or how to handle conflicts that occur internally in any investments.
The articles of incorporation establish the type of foundation and what state in which it will operate. The trademark application states what type of international protection their logo or name has under law. The Non-Disclosure Agreement establishes such as whether employees can or cannot disclose information to details to others.
Choosing Your Start-Up Foundation’s Attorney: A Closer Look
With Hasson Law Group LLP‘s foundation start-up legal assistance, you’ll learn what tasks are necessary for a successful beginning. We can assist you with completing legal documentation and answer any questions you may have regarding how contributions should be processed.
Because a foundation is a non-profit entity, it may encounter many tax concerns. Our foundation legal team can also assist you in filing the proper papers with the Internal Revenue Service to ensure you are covered. Contact Hasson Law Group LLP at (678) 701-2869 for expert foundation start-up legal assistance.
Proudly serving the Atlanta, GA area!