(Courtesy of Joseph A. Schubin and Associates, PLLC, Schubin & Isaacs) The law office, Joseph A. Schubin and Associates, PLLC, Schubin & Isaacs, which has a long history in working with the local communities’ synagogues and non- profit organizations, began its life in 1930 as the Law office of Benjamin Isaacs.
In those pre- and post-World War II years, Benjamin Isaacs became the “go to” attorney for all the synagogues, mosdos, charities, educational institutions and yeshivas that wanted to open files as religious and not-for-profit corporations and/or to obtain governmental approval and status as tax deductible and tax exempt Internal Revenue Code 501 (c) (3) organizations.
Over time, the initial needs of the religious organizations and non-profit corporations that were founded to assist the functioning of the aforementioned institutions evolved into a specific need for help with corporate governance as board members, purposes and needs shifted, and as a consequence of relocation (new addresses) and changing governmental requirements.
The law office also became involved in the real estate and lending transactions of its constituent organizations as they grew and matured.
The foundational paperwork of these organizations is the state formation documents which are required for these organizations because Federal IRC 501 (c) (3) status is predicated upon them. With few exceptions, the state foundational Certificates of Incorporation have to be filed before the Federal IRC 501 (c) (3) status could even be considered and ultimately granted by the Internal Revenue Service.
The Foundational Certificates of Incorporation are prepared and filed based upon the laws and statutes of the state in which the organization is located. The state laws differ and vary greatly at times from state to state.
As time goes on, there is an ever increasing relocation of organizations (synagogues, schools and yeshivas, charities and other mosdos) from cities in New York State to cities in New Jersey such as Teaneck, Lakewood and Passaic. Additionally, such organizations may be dealing with issues involving the transfer of the ownership of buildings and/or other property owned by the New York organization that is moving to New Jersey.
For instance, New York State law does not allow a New York religious corporation to do what it wants with its own real estate without first applying for and obtaining the consent, approval or order from a New York court or the New York State attorney general.
Likewise, if a New York organization that is duly classified as a religious corporation wants to free up money from its equity in its New York property by obtaining a loan, it is not even allowed to take a mortgage without first obtaining the consent of the New York courts or the New York attorney general.
An experienced lawyer who is very familiar with these matters is needed to work on the preparation and submission of the petition for the necessary consent, approval or order because this is not given readily by the New York courts or attorney general.
If an organization must continue some or all of its activities in New York State, only highly knowledgeable and experienced attorneys are capable of creating a “hybrid”organization that has the benefits of a religious corporation, and they can likewise avoid pitfalls that can lead to rejection by the New York courts or the New York State attorney general.
Attorneys who are qualified and experienced in the matter are also able to assist with unique and personal issues that involve an organization moving to New Jersey, its rabbi and officers, or even appropriately deal with complex issues of an established organization that has been in New Jersey for some length of time.
Issues that can arise may include or be variations of those involving:
- The use of funds in New Jersey by the organization that had initially raised the money for use in New York.
- The use of those New York organization funds to fund a New Jersey organization.
- How to compensate, with a minimum of tax impact, the rabbi moving with his organization to New Jersey who wants to receive some of the substantial funds being realized during the move.
- How to compensate, with the least tax impact, the rabbi who received minimal or no salary for many years from the organization that is now able and willing to rectify matters.
Joseph A. Schubin and Associates, PLLC, Schubin & Isaacs is a law office whose attorneys practice in various state and federal courts, as well; as the US Supreme Court. They specialize in serving the needs of non profits nationwide and internationally.
