Section of Taxation

To: Those facilitating pro bono legal assistance

From: American Bar Association Section of Taxation Pro Bono Committee

Date: June 10, 2005

The legal community has long provided volunteer service to the charitable sector (organizations formed and operated for purposes within Internal Revenue Code Section 501(c)(3)). As you likely know, there have been a myriad of legislative and regulatory events over the last year that highlight the need for charities to both comply with tax-exemption mandates and be appropriately governed; these have taken place in several states, and at the federal level, in the person of the IRS and various Congressional hearings. Undoubtedly, lawyers will find themselves increasingly sought to serve on Boards of charities and/or provide assistance to those managing charities.

The Tax Section's Pro Bono Committee has as one of its key charges advancing the health and credibility of charitable organizations. To this end, the Committee has undertaken a project to alert lawyers about the availability of two key IRS resources geared to charities and their advisors. Please communicate to your membership the fact and accessibility of these resources; they are invaluable not only for attorneys who have some familiarity with the tax and business laws unique to charities, but also for attorneys who are relatively unfamiliar with this field:

• Lifecycle of a Public Charity - flowcharts the procedures and operational aspects underlying creation, application for tax-exemption, changes in status, merger, dissolution, etc. of 501(c)(3)-qualified organizations. Available at: www.irs.gov/charities or www.irs.gov/eo(look under the "Related Topics" banner).

• Subscription e-mail service for exempt organization notices/developments - Sign up by sending email to: eo-update-subscribe@lists.qai.irs.gov

Should you have any questions or comments on our Committee's efforts to assist charities and expand opportunities for lawyers to bring valuable pro bono assistance to the charitable sector, please contact the undersigned by phone or email at 612.822.2677 or eve@taxexemptlaw.org, respectively.

Sincerely,

Eve Borenstein
Chair, Subcommittee on Assistance to Charitable Organizations of the Section's Pro Bono Committee and
Co-chair, Subcommittee on Small Organizations of the Section's Exempt Organizations Committee