Structuring For-Profit/Non-Profit Joint Ventures



  • Available Until 3/28/2021
  • Next Class Time 11:00 AM MT
  • Duration 60 min.
  • Format MP3 Download
  • Program Code 0118345
  • MCLE Credits 1 + hours

Course Price: $89.00


Nonprofit organizations frequently partner with for-profit companies to aid their mission. These joint ventures or other forms of collaboration can bring the nonprofit additional revenue, technical advice, marketing support, or other valuable services. For regulators, including the IRS, these joint ventures give rise to many concerns, including whether the nonprofit’s tax-exempt status is being exploited for private gain or other inappropriate purpose. If these joint ventures and other collaborative efforts are not carefully structured and operated, they can easily cost the nonprofit its tax-exempt status or expose it to penalties. This program provides you with a real-world guide to structuring joint ventures and other collaborations between nonprofit organizations and for-profit companies and gives you practical advice on mitigating risk.

• Structuring and drafting joint ventures between nonprofits and for-profit companies
• Risks to a nonprofit’s tax-exempt status in joint ventures and other collaborations—and mitigating that risk
• Types of joint ventures—contractual ventures, entity ventures, full integration—and choice of entity
• Essential due diligence for nonprofits considering joint ventures/collaborations
• Terms of collaboration—scope of venture, exclusivity, management, allocation of costs, and termination
• Understanding the relationship of “control” and the unrelated business income tax (UBIT)
• Issues in joint ventures between nonprofit organizations

Speaker: Michael Lehmann is a partner in the New York office of Dechert LLP, where he specializes in tax issues related to nonprofits and the tax treatment of cross-border transactions. He advises hospitals and other health care providers, research organizations, low-income housing developers, trade associations, private foundations, and arts organizations on obtaining and maintaining tax-exempt status, executive compensation, reorganizations and joint ventures, acquisitions, and unrelated business income planning. Mr. Lehmann received his LL.M. from New York University School of Law.