The groundbreaking Facebook founder has once again broken with tradition and formed his philanthropy as an LLC. Clients have questioned the benefits of choosing to forgoe the traditional private foundation in favor of an LLC. We are here to break it down.
I am fortunate to represent a number of established and growing nonprofits, some of which are expanding into new geographic areas and new markets or scaling up their existing operations to meet demand. I am often asked to advise them on how best to structure their organizations to accommodate growth. Invariably, my answer is the classic lawyer answer – it depends.
Most states require you to register your organization if you solicit donations from their residents. Many states also require registration if your organization collects substantial or ongoing donations from their residents, even if you aren’t specifically targeting donors in that state. Download our comprehensive list of each state’s requirements.
Download our free guide to learn about the many elements needed to run a successful nonprofit organization, as well as how to avoid common pitfalls and mistakes.