Discussion plus document drafting skills - 4 hours. This course is a combination skills class and a lecture course. Students learn the special legal rules and concepts applicable to nonprofit organizations (particularly IRC 501(c)(3) nonprofits) and then, in a workshop class structure, they apply those rules and concepts to complete drafting assignments regarding the formation of nonprofit organizations under state law and the application for tax-exempt status for nonprofit organizations under Federal tax laws. The first part of the course (approximately 40%) considers nonprofits from the state law perspective: organization, operation and dissolution of nonprofit corporations, charitable trusts and associations including internal governance rules, fiduciary obligations of officers and directors, rights of members, regulation of charitable solicitation, and enforcement powers of the attorney general. The balance of the semester (approximately 60%) is spent examining in detail the extensive federal tax laws applicable to nonprofits, including requirements for attaining tax-exempt status, the inurement and private benefit concepts, intermediate sanctions, limitations on lobbying and political activities, special rules applicable to foundations versus public charities, the unrelated business income tax, and charitable deductions. At the option of the instructor, the course might also cover nonprofit accounting issues, local property tax and other local tax exemptions, and public/private partnerships. Further, the course will definitely include document drafting assignments. The grade for the class, subject to certain minimum attendance requirements to ensure the combination skills/lecture class format detailed at the 1st class, will be based on document drafting assignments only. So do not sign-up for this class if you anticipate not attending/or late attendance to many sessions. Since this is a skills plus new-law-to-learn-substantive class, there must be some minimum attendance requirements. Also do not sign-up for this class simply to just satisfy the advanced writing requirement (AWR) because the total work involved with the drafting assignments are significantly longer in page-length than that required for the AWR so the drafting assignments are likely to require more time than other classes (like seminars) that are more designed to satisfy the AWR. However, do sign-up for this class if your have a definite interest in learning about nonprofit organizations AND/OR getting some introductory/fundamental business/transactional drafting experience. It will be well-worth the 4 unit commitment.
Prerequisite: Prior or concurrent enrollment in 215 Business Associations or instructor consent.
Graduation Requirements: May satisfy the Advanced Writing Requirement OR count towards the Professional Skills Requirement, student must choose one.
Class limit: 13 students.