Are you seeking to incorporate your group or foster home as a nonprofit organization, and then qualify the home as a §501(c)(3) charitable organization? Are you concerned because your group or foster home has been operating, perhaps for years, without being qualified as a tax-exempt organization?

If you've answered YES to either of the above questions, read on, because we can help you.

Thompson & Thompson is privileged to represent group and foster homes nationwide. Recently we obtained §501(c)(3) charitable tax-exempt status for a group home and a foster home, both in the Los Angeles area, in record time. In both instances, from the time we submitted the Applications for Recognition of Exemption to the IRS to the time that we received the IRS determination letters, only six (6) weeks elapsed!

How did we obtain tax-exempt qualification of these two homes so quickly?

The answer is simple. We know what we're doing in this area. We know how to incorporate a group or foster home as a nonprofit organization. We know that certain provisions must be in the articles of incorporation to satisfy state and IRS concerns. And, we know what must be stated in the Application for Determination of Exemption to please the IRS.

Now, not all group and foster homes will receive their exempt status determination from the IRS in only six (6) weeks. Sometimes articles of incorporation of already incorporated group or foster homes need amendment - which takes time.

But, if you're looking for a specialist law firm to handle your group or foster home's incorporation in any state, and/or qualification as a §501(c)(3) tax-exempt organization, please contact us. If you would like to obtain tax-exempt status or you want us to review your current tax situation, assemble a package of: 1) your Articles of Incorporation; 2) the names and addresses of your officers and board members; 3) a copy of your bylaws or constitution; 4) your federal EIN (employer identification number);` and 5) a recent set of financial statements. We will need additional information later, but this will get us started. We will deal with the IRS and prepare all of the documents necessary to obtain tax-exempt status.

Is your home for the aged recognized as a tax-exempt, Internal Revenue Code §501(c)(3) charitable organization?

Thompson & Thompson is a legal services provider privileged to represent nonprofit tax-exempt organizations of many kinds nationwide. We are sometimes asked whether a home for the aged can qualify as a §501(c)(3) charity. The answer is "YES," subject to the following qualifications:

An organization otherwise qualified for charitable status under §501(c)(3) of the Internal Revenue Code (federal tax law), which devotes its resources to the operation of a home for the aged, will qualify for charitable status if it operates in a manner designed to satisfy three primary needs of aged persons, namely:

1) the need for housing;
2) the need for health care, and
3) the need for financial security.

The need for housing will generally be satisfied if your home for the aged provides residential facilities designed to meet some combination of the physical, emotional, recreational, social, religious, and similar needs of aged persons.

The need for health care will generally be satisfied if your home for aged directly provides some form of health care, or in the alternative, maintains a continuing arrangement with other organizations, facilities, or health personnel, designed to maintain the physical and mental well-being of your residents.

The need for financial security, i.e., the aged person's need for protection against the financial risks associated with later years of life, will generally be satisfied if two conditions exist. First, your home for the aged must be committed to maintaining in residence any persons who become unable to pay their regular charges - this may be done by seeking funds from local and federal welfare units, or by soliciting funds from the general public, your sponsoring organization, or some combination thereof, subject to certain exceptions for low-income housing organizations. Second, your home for the aged must operate so as to provide its services at the lowest feasible cost, taking into consideration all overhead expenses, maintenance of adequate reserves, expansion of facilities, etc.

If you're thinking about acquiring, selling, or organizing a tax-exempt home for the aged, or are converting a for-profit home to a tax-exempt home, you may wish to contact us. If you would like to obtain tax-exempt status or you want us to review your current tax situation, assemble a package of: 1) your Articles of Incorporation; 2) the names and addresses of your officers and board members; 3) a copy of your bylaws or constitution; 4) your federal EIN (employer identification number);` and 5) a recent set of financial statements. We will need additional information later, but this will get us started. We will deal with the IRS and prepare all of the documents necessary to obtain tax-exempt status.