Forming and Preserving 501(c)(3) Status Legal Structure, IRS Compliance, and Political Risk (2025 Edition)

Gregory A. Nielsen | Nielsen Training & Consulting, LLC

Gregory Nielsen is a sought-after speaker and Consultant committed to helping leaders and organizations translate vision into reality. He is an accomplished nonprofit CEO, having previously led the Center for Nonprofit Excellence. His leadership was recognized locally and nationally and honored with awards from the Better Business Bureau for Ethics and the Louisville Urban League for championing diversity. Gregory is a military veteran, having previously served as an officer and attorney in the United States Army. He holds a Bachelor of Arts Degree in Government and International Relations from the University of Notre Dame and a Juris Doctorate from Notre Dame Law School.

Stephanie Robbins | Harmon, Curran, Spielberg & Eisenberg, LLP

Stephanie Robbins draws on her decade-long experience with the Internal Revenue Service to advise the firm’s clients on the complex tax laws and processes that regulate their day-to-day activities and other laws affecting their operations, including their lobbying and political activities.

Prior to joining Harmon Curran, Stephanie Robbins spent ten years with the Internal Revenue Service. Stephanie began at the IRS in in 2011 as a Presidential Management Fellow with an appointment as a tax law specialist in the Exempt Organization’s Ruling and Agreements division of the Tax Exempt and Government Entities business unit. As a tax law specialist, Stephanie reviewed applications for recognition of tax-exempt status for a broad range of organizations, including public charities, private foundations, and title-holding companies. She also authored private letter rulings and worked with broader issues, including the unrelated business income tax, supporting organizations, and group rulings.

In 2014, Stephanie moved to the IRS Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes (EEE)) as an Honors Attorney. While at Counsel, Stephanie was the author of significant guidance affecting supporting organizations, charitable hospitals, organizations with unrelated business taxable income, and group exemption letters. Prior to the enactment of legislation prohibiting the IRS from issuing guidance on the political activities of exempt organizations, Stephanie was drafting guidance that would have provided greater certainty regarding the amount and types of political activities in which exempt organizations are permitted to engage. As a technical expert, Stephanie regularly supported IRS field attorneys and the Department of Justice with litigation involving complex legal questions involving the meaning of the term “primary,” excess benefit transactions, and exceptions to the unrelated business income tax for social clubs and educational organizations. Stephanie processed numerous private letter rulings while at Counsel and has extensive experience navigating the complex structure of the IRS.

Stephanie left government practice to focus on issues facing progressive organizations and to support those organizations in the accomplishment of their missions. When not working, Stephanie enjoys playing with her two young sons, listening to music, working with wood, and running and biking.

Heather Lyster | Harmon, Curran, Spielberg & Eisenberg, LLP

Heather Lyster advises nonprofit clients on the complex and wide range of laws applicable to tax-exempt organizations engaged in public interest, policy advocacy, and political activities.

Heather Lyster joins Harmon Curran with 12 years of experience as a lawyer. Prior to joining the firm, Heather served over seven years at Greenpeace USA, where she most recently served as Associate General Counsel, Programs. She advised senior management and staff on legal issues and strategy affecting the 501(c)(4) and 501(c)(3) organizations, including IRS regulations, lobbying, campaign finance, intellectual property, contracts, employment, corporate governance, and telecommunications law. She worked with staff on Greenpeace USA’s campaigns to ensure legal compliance across a variety of legal issues.

Before working at Greenpeace USA, Heather was an Assistant Public Defender with the Maryland Office of the Public Defender in Prince George’s County, where she represented indigent clients through pre-trial and trial stages of misdemeanor and felony cases. Heather earned her law degree at the University of Illinois Chicago Law in 2011. She also has a Master’s degree in European Studies from the London School of Economics and a Bachelor’s degree in International Affairs and German Language & Literature from George Washington University. Outside of work, Heather enjoys running, gardening, and playing with her two young children.

Greg McRay | Foundation Group

Greg McRay is the President and CEO of Foundation Group. With a professional background in tax and accounting, Greg began working extensively with nonprofit organizations starting in the early 1990s. His solo practice continued to grow, leading to the decision to develop a professional services firm addressing the tax and compliance needs of nonprofits nationwide. Teaming with a like-minded associate, Foundation Group was launched in September 1995.

Since the very beginning, Greg’s vision for Foundation Group has been to empower our clients with the expert counsel and essential services that help nonprofit leaders make better decisions, reduce risk, and grow their organizations. That vision is fulfilled in FG’s comprehensive, consulting-based approach to helping new nonprofits get up and running, as well as the ongoing compliance services that we provide to existing nonprofits.

A frequent writer and presenter, Greg has been a featured CPE expert for Strafford Publishing and 501(c)(3) University, and his writing is syndicated through Alltop.com, LawForChange.org, EZineArticles.com, Newstex and others. In addition, his article contributions to Foundation Group’s blog has helped it earn a “Top Honors” award for excellence in nonprofit content. Over the course of his 25+ years in the nonprofit space, Greg has also put action to advice, serving on the board of directors of numerous charitable organizations in the Nashville area.

Greg is licensed by the Internal Revenue Service as an Enrolled Agent and is admitted to represent our clients in all matters before the IRS.

A coffee lover, avid motorcyclist, and outdoor guy, he lives just outside of booming Nashville, Tennessee with his family in the community of Mt. Juliet.

Session I – Forming and Preserving 501(c)(3) Status: Legal Structure, IRS Compliance, and Political Risk | 1:00pm – 2:00pm

• Drafting governing documents and structuring the organization
• IRS Form 1023 and 1023-EZ: Choosing and preparing the right application
• State-level compliance and multi-jurisdictional requirements
• Unrelated Business Income (UBI) and valuation concerns
• Maintaining exempt status: Risks of political involvement
• IRS scrutiny and audit triggers
• Post-formation governance and compliance duties

Break | 2:00pm – 2:10pm

Session II – Fiscal Sponsorship for Nonprofits | 2:10pm – 3:10pm

• What Is fiscal sponsorship?
  • Definition and history
  • Common structures (Model A vs. Model C)
  • When and why organizations choose fiscal sponsorship
• Benefits and limitations
  • Advantages: Tax-exempt status, administrative support, fundraising capability
  • Potential drawbacks: Control, independence, and public perception
  • Realistic expectations for both parties
• Legal and financial responsibilities
  • IRS rules and compliance
  • Fund management and reporting obligations
  • Who owns the funds and intellectual property?
• Selecting and evaluating a fiscal sponsor
  • What to look for in a sponsor (mission alignment, capacity, transparency)
  • Key questions to ask before entering an agreement
  • Importance of due diligence
• Crafting a strong fiscal sponsorship agreement
  • Essential components: Scope of work, termination clauses, fees, roles
  • Clarifying governance and decision-making
  • Protecting both the sponsor and the sponsored project

Break | 3:10pm – 3:20pm

Session III – The Do’s and Don’ts of Nonprofit Fundraising, Charitable Gifts, and Contributions: Legal, Accounting, and Compliance Considerations | 3:20pm – 4:20pm

• Federal tax law governing charitable contributions
• Multistate compliance for charitable solicitations
• Documentation and substantiation of gifts
• Non-cash contribution valuation and reporting risks
• Legal issues in donor-advised funds and restricted gifts
• Audit triggers, enforcement trends, and best practices