Clark Hill has one of the largest, most extensive tax-exempt and charitable organizations practices in Michigan. Our attorneys have many years of experience in representing a wide variety of tax-exempt organizations - among these, private foundations, community foundations, professional and trade associations, art and cultural institutions, health care and community mental health organizations, colleges and secondary schools, economic development corporations, human service agencies and various social, civic and religious groups. This practice involves a full range of services including advice about the regulation of tax-exempt organizations by state and federal authorities, filing for and obtaining exempt status from the Internal Revenue Service, the treatment of unrelated business taxable income, director and officer liability issues, corporate governance, and all aspects of organization and operations. Clark Hill attorneys are recognized experts having written books and articles and lectured extensively on tax-exempt organization law.
Private Foundations
The firm represents many of the largest private foundations in the State of Michigan. As the home to some of the most prominent private foundations in the country, our state plays a leading role on the national scene among organizations of this kind. One client, the Council of Michigan Foundations, is the largest regional association of grantmakers, and has wide-ranging influence among its peers.
Our attorneys participate in many workshops and educational activities sponsored by the Council. Duane L. Tarnacki is the author of four editions of Establishing a Charitable Foundation in Michigan, a widely used handbook for creating private foundations and public charities. In addition, Clark Hill attorneys have written numerous other publications and articles and lecture frequently on subjects of interest to private foundations and community foundations. Our work for private foundations has included general corporate advice and services, preparation or review of information returns, advice about self-dealing issues, the excess business holding rules and other prohibited transactions, negotiation of sales of blocks of securities, negotiation of financing transactions in connection with economic development grants, compliance with expenditure responsibility requirements, and addressing board member and volunteer liability concerns. We also have extensive experience in advising foundations on the legal aspects of alternative investments.
Community Foundations
The firm also represents a number of community foundations in the Midwest region. Services for these organizations have included the establishment of new community foundations, assistance in the creation and use of component funds, advice on issues relating to affiliation with other community foundations, establishment of scholarship funds, advice regarding asset-building techniques and planned giving programs, and assistance in certification for the Michigan Community Foundation tax credit. We have played a prominent role in developing the use of supporting organizations by community foundations in the Midwest, and have helped create uniform documents and policies for use by Michigan community foundations.
Trade and Professional Associations
We represent many trade and professional associations as well, including the Michigan Manufacturers Association, Association of Businesses Advocating Tariff Equity ("ABATE"), American Society of Employers, Michigan Osteopathic Association, the Engineering Society of Detroit and Council of Michigan Foundations. Our representation of these organizations includes advice relating to group insurance programs, state and federal regulation of lobbying activities, and antitrust concerns with regard to setting industry standards, restricting membership, and exchanging information about markets and industries. We have assisted many association clients with establishing for-profit service subsidiaries as well as charitable supporting organizations.
Economic Development Organizations
Clark Hill has demonstrated its commitment to the City of Detroit and its social and economic rebirth through the Firm's involvement in the federal Empowerment Zone project and other economic development programs. Our attorneys have worked with the City of Detroit Administration and various civic organizations including Detroit 300 Conservancy, Downtown Detroit Partnership, Inc., Motor Cities National Heritage Area and Detroit Economic Growth Corporation in connection with these projects. We represent and have performed substantial services for the Empowerment Zone Development Corporation.
Arts and Cultural Institutions
We provide legal services to many arts and cultural institutions, among them the Detroit Public Library, The Henry Ford, Detroit Historical Society, College for Creative Studies, and Stratford Shakespearean Festival of Canada. Services for these organizations have included the preparation and qualification of employee benefit plans, addressing employment law concerns, attending to real estate matters, creation of endowment and capital campaigns and assistance regarding the regulation of fundraising activities.
Health Care Organizations
Our clients include many health care and mental health organizations. Our ongoing services to these organizations include advice about regulatory matters, corporate and contractual matters and employment law. We have also assisted clients with major corporate reorganizations.
Other Tax-Exempt Organizations
Finally, we represent a host of tax-exempt organizations that do not fit into any clearly definable category, such as the American Red Cross Southeastern Michigan Chapter, Volunteer Accounting Service Team, Michigan Humane Society, Lutheran Social Services of Michigan, Lutheran Child & Family Services and YMCA of Metropolitan Detroit.
Clark Hill attorneys have been proactive in legislative efforts affecting nonprofit organizations through their participation in the Nonprofit Corporation Committee of the State Bar, various ABA committees and the Government Relations Committee of the Council of Michigan Foundations. Our attorneys participated in the preparation of comprehensive changes to the Michigan Nonprofit Corporation Act and helped develop and refine key legislation limiting the liability of volunteer directors and trustees.
We frequently advise individual clients, as well as charitable organizations, with regard to charitable giving. Much of this work relates to planned giving techniques, such as charitable remainder and charitable lead trusts, pooled income funds, charitable gift annuities, installment bargain sales, the use of private foundations and community foundation component funds, and income and estate tax implications.
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