Legal Question in Real Estate Law in New York

Re: Non-profit Organization Gift from foreign chapter to purchase real estate

I think you were referring to IRC 501(c)(3) not-for-profit status.

Under NY law, a not-for-profit corporation has the power to borrow funds and to receive gifts, provided its corporate documents do not place restrictions and other provisions of the corporation law (such as those relating to corporate finance) are respected. Under the Internal Revenue Code, the whole point of a not-for-profit is of course to be able to receive donations. However, for them to qualify as charitable contributions, certain rules, including disclosure to IRS, have to be followed. Commercial lending to not-for-profits is not subject to these rules.

Also note that if you secure an exemption from the IRS, it only applies to federal taxes. You generally must apply for separate state, county and local tax exemptions (from income, franchise, excise, sales, use, property and other taxes).

I have experience with NGOs and other not-for-profit startups, so if you have further questions or need counsel to handle the corporate, real estate and tax aspects of your formation do not hesitate to call or email me.

Please note that the response above is in the nature of general information, is not legal advice and should not be relied upon as such.