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Potential Conflicts- Splitting 1 Nonprofit Into 2 Similar.

Patents & Trademarks Discussion Forum

Potential Conflicts- Splitting 1 Nonprofit Into 2 Similar.

Postby Halfdan » Sun Dec 18, 2016 3:14 pm

I am involved with a nonprofit that provides various youth programs. One of the programs has grown well beyond the others. It seems in the best interest of that program that it be split off to create a separate nonprofit dedicated solely to this program. My concern is regarding potential pitfalls we may not foresee such as an issue with either the name of the new NP and / or the new but very similar mission statement. Are similar names or missions a potential issue in the approval of the NP? Also, might their be an issue for the Officer that would start the new NP being that he is currently involved with the original NP? We are in the preliminary stages and looking to head off any potential legal issues that might waste scarce startup funds. Any advise or direction would be greatly appreciated. Thank You!
Halfdan
 
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Potential Conflicts- Splitting 1 Nonprofit Into 2 Similar.

Postby Bradshaw » Wed Dec 21, 2016 4:07 pm

I am involved with a nonprofit that provides various youth programs. One of the programs has grown well beyond the others. It seems in the best interest of that program that it be split off to create a separate nonprofit dedicated solely to this program. My concern is regarding potential pitfalls we may not foresee such as an issue with either the name of the new NP and / or the new but very similar mission statement. Are similar names or missions a potential issue in the approval of the NP? Also, might their be an issue for the Officer that would start the new NP being that he is currently involved with the original NP? We are in the preliminary stages and looking to head off any potential legal issues that might waste scarce startup funds. Any advise or direction would be greatly appreciated. Thank You!
Bradshaw
 
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Joined: Wed Feb 12, 2014 6:36 am

Potential Conflicts- Splitting 1 Nonprofit Into 2 Similar.

Postby Earie » Sat Dec 24, 2016 4:44 am

I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming that you are referring to a 501(c)(3) organization.   The similar names and missions are not issues as to the IRS exemption determination.  Those may be trademark issues, however. There will be no issue for the officer who is starting the new nonprofit if, before he starts any work in it, he obtains a board resolution allowing such. As for the trademark issues, I would be willing to work on your matter, but I would need to spend a substantial amount of time and that would be beyond the scope of my offer of free services.  If you want to inquire about hiring me for such work, please contact me directly to the email address below.  

Harvey Mechanic, Attorney at Law - [email protected]
Earie
 
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