Expanded Help & FAQs

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Nonprofits and mission-driven businesses often ask the same questions when choosing legal counsel. We’ve gathered the most common ones here. If you don’t see yours, reach out — our team is glad to help.

Do I really need a lawyer to start a nonprofit?

Yes. While you can file incorporation papers yourself, nonprofits face strict IRS and state requirements. An attorney helps ensure your bylaws, governance policies, and 501(c)(3) application are prepared correctly the first time, which reduces costly delays or rejections.

How much does it cost to form a nonprofit?

Most nonprofit formation projects fall between $5,000–$7,500, depending on complexity. This typically includes incorporation, bylaws, IRS filings, core governance policies, and first-year state filings. We confirm scope and cost in writing before work begins, so you know what to expect.

How long does IRS 501(c)(3) approval take?

The IRS review process usually takes 3–6 months, though timing varies. Simple applications may be approved faster, while larger organizations or those with complex activities can take longer. We prepare your filing thoroughly to reduce requests for additional information, which helps avoid unnecessary delays.

What is preventative legal counsel?

Preventative counsel means solving problems before they escalate into lawsuits, audits, or penalties. Instead of reacting to crises, we review your governance documents, contracts, and HR policies regularly. This proactive approach helps your organization stay mission-focused and reduces the risk of compliance issues.

How often should nonprofits do a compliance or governance audit?

We recommend at least once a year. Annual audits check bylaws, filings, and governance practices to catch risks early. This helps prevent costly penalties or even loss of tax-exempt status. Many boards also request mid-year reviews if they’re planning major changes, like adding programs or expanding into new states.

What’s the difference between a nonprofit compliance audit and an HR compliance audit?

A nonprofit governance audit reviews bylaws, board duties, tax filings, and compliance with IRS requirements. An HR compliance audit looks at policies, contracts, wage/hour issues, and workplace practices to make sure you meet state and federal labor laws. Many organizations schedule both annually for complete protection.

Can you help with employment law for nonprofits?

Yes. We provide employer-side counsel tailored to nonprofits. Common services include:

Employee handbooks (most projects fall between $2,500–$4,000).

Employment agreements and independent contractor policies.

Wage/hour law audits.

Workplace investigations.

Training for boards and managers.

What is Fractional General Counsel?

Fractional General Counsel (GC) means ongoing access to a dedicated attorney without hiring in-house counsel. Our monthly retainer plans (starting at $1,500) cover contracts, compliance, and board advising. Many nonprofits choose this model because it’s predictable and scales as they grow.

Can nonprofit board members be paid?

Yes — but with limits. Federal law allows nonprofits to compensate board members for reasonable services, but excessive payments may jeopardize tax-exempt status. Some states also have restrictions. We guide boards through structuring compensation policies that remain compliant and transparent.

What’s the difference between a nonprofit and a social enterprise?

A nonprofit is tax-exempt and reinvests all funds into its mission. A social enterprise is a for-profit company that pursues both revenue and positive impact. Both face unique legal challenges, from governance to impact reporting. We advise clients on structuring and compliance whichever model they choose.

Are your services only for nonprofits?

No. While nonprofits are at the core of our work, we also serve social enterprises, mission-driven startups, and small businesses that need compliance, HR, or general counsel support.

What if my organization already has a lawyer?

We often work alongside existing counsel. For example, many clients retain litigation attorneys for disputes but rely on us for preventative audits, employment counsel, and ongoing governance support. Collaboration is common — our role is to reduce risk and support your team.

How do I get started?

Schedule an initial consultation at no cost. We’ll learn about your mission, outline legal options, and provide a clear timeline and cost estimate. You’ll leave with a roadmap and next steps.

Still Have Questions?

We’d be glad to help. Contact us anytime, and our team will point you in the right direction.

Mission Impact Legal Advisors provides preventative legal counsel for nonprofits, social enterprises, and purpose-driven startups. Our team assists organizations with formation, governance, compliance, employment law, and ongoing general counsel. We focus on delivering clear guidance to help reduce risks and support sustainable, mission-driven growth.

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3632 Land O Lakes Blvd Suite 105-20

Land O Lakes, FL 34639

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