In early December 2007, the Minnesota Supreme Court ruled that a nonprofit organization will not qualify for property or sales tax exemptions as an institution of purely public charity unless it provides goods or services free, or at a substantially reduced rate, as a substantial part of its operations.  An earlier state agency ruling had said that an organization found to be ineligible for property tax exemption also would be ineligible for sales tax exemption. How might this affect your organization? 

First, read a primer explaining the rulings, prepared by a LegalCORPS volunteer lawyer.

You also can learn more from The Minnesota Council of Nonprofits’ site, which provides numerous links to information and commentary about the recent rulings.

If you still have questions, LegalCORPS can connect you with a pro bono lawyer to provide brief advice by phone – at no charge.  The consultation can cover:

·        the current status of Minnesota law on nonprofits’ property tax and sales tax exemptions,

·        how it might affect particular organizations, and

·        what options particular organizations might have.

To receive this brief pro bono advice, a representative of a nonprofit MUST:

·        fill out the client portion of a special LegalCORPS application form;

·        sign it by hand and mail it to LegalCORPS at 600 Nicollet Mall, Suite 390A; Minneapolis, MN 55402-1039, or

·        indicate a signature on the line acknowledging the limits of the attorney-client relationship the brief advice would create – and send the form as an attachment to an e-mail message to info@legalcorps.org.

After LegalCORPS receives a completed form, it will supply your contact information to one of a number of LegalCORPS volunteers who have agreed to provide brief phone consultations on this matter.  LegalCORPS will let you know when we have received your completed form and have sent your information to a volunteer lawyer.  That lawyer will contact you as soon as possible.  You also will get contact information for the lawyer.

(For this brief phone consultation program only, LegalCORPS’ annual budget threshold for providing pro bono service to nonprofit organizations will not apply.)