Protecting Charitable Institutions in a Shifting Legal Landscape
Charities and charitable giving are distinctive and essential features of American culture. While many other countries have charitable infrastructures, the United States leads the world by a large margin in total charitable donations, with an estimated $592.5 billion donated in 2024.
A keystone for charitable giving is Section 501(c)(3) of the Internal Revenue Code, which makes contributions to qualifying organizations exempt from individual tax and which makes the organizations exempt from taxes for charitable activities. Without tax exemption, there is little doubt that charitable giving would decline precipitously if not collapse. Similarly, most charities run on limited budgets and governmental challenges to tax exempt status or, in the worst case, criminal charges, can devastate if not eliminate the ability of charities to do their work.
Charities, just as individuals and for-profit entities, have broad First Amendment protections, which entitle them to freedom of speech, freedom to publish, freedom of religion and the right to petition the government for redress of grievances. In recent months, the Trump administration has given strong indications that it will consider removing tax-exempt status or even consider criminal prosecution for charities it views as having agendas critical of the current administration.
LBKM has extensive experience both in representing charitable institutions and in litigating First Amendment cases. We act for a number of the largest religious charities in the world, as well as charities that operate in a variety of public policy areas, advising on best practices and safeguarding them from possible threats. One of our lawyers sits on the board of a major global digital news organization and is deeply involved in global free press issues. In a complex political environment, LBKM lawyers can assist charitable organizations in protecting their tax-exempt status and in litigating civil or criminal matters brought against charitable institutions based upon their advocacy, programming or related activities.