Finding a lawyer should not feel harder than solving the legal problem itself. And yet, here we are.

In this episode, Meghan and I talk about something that comes up constantly in my nonprofit law practice: how nonprofit leaders and boards actually find a good lawyer and how to tell whether someone is the right fit.

Real Listener Question:

"I am a board member tasked with finding my small nonprofit a lawyer. I am trying to collect five options for the board to review and have the board interview each lawyer. I've prepared an RFP to get information from as many firms as possible. Is there anything else I'm supposed to do to make sure we did a fair search?"

We dig into why hiring a lawyer is not the same as hiring other vendors and why an RFP is often the wrong tool for the job. We talk about common misconceptions nonprofits have about fairness, pricing, and process, and why trying to copy large institutions can backfire for smaller organizations. This conversation also pulls back the curtain on how lawyers actually work, what red flags to watch for, and how to avoid overcomplicating a decision that already feels overwhelming.

What You'll Learn:

• How nonprofits typically find lawyers
• Why RFPs usually do not work for legal services
• What legal expertise actually looks like
• How pricing structures should be discussed
• Warning signs early in the relationship
• Why "cheapest" is not always best
• How to trust your gut while doing due diligence

Bottom line: Hiring a lawyer does not require a perfect process. It requires clarity, trust, and a focus on finding someone who understands your nonprofit and can actually help you.

Resources from this Episode

• Previous Episode: How Classy May Be Hurting Your Donor Relationships: https://birkenlaw.com/charity-therapy-podcast/ct157-classy-donor-acknowledgement/
• Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/01/CT158_Transcript.pdf

Connect with Us

• Jess Birken: https://www.linkedin.com/in/jessbirken/
• Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/

Listen & Engage

• Listen on Apple Podcasts | Spotify | YouTube | Amazon Music
• Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review"
• Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story

Stay Connected

• Sign up for the Birken Law Email list: https://birkenlaw.com/signup/
• Follow us on Facebook, Instagram, Twitter

Nonprofits are tax-exempt, so lots of people assume that nonprofits don't have to worry about taxes ever. Right???? Well, not quite 😐

In this episode, Meghan and I dig into a question I hear all the time from people who want to help their communities but are confused about how nonprofit tax rules actually work.

Real Listener Question:

"I own a couple of restaurants and we have several events to raise money for certain causes. Usually the money goes toward a charity or a local group, but sometimes we'll do it for a community member who needs financial support. The problem we're seeing is that when we give money to an individual, it messes up their taxes for the year. My bookkeeper suggested starting a nonprofit since nonprofit money isn't taxed. What kind of nonprofit would do that for us?"

Quick answer – nonprofit tax exemption does NOT mean that everyone can ignore taxes for any money coming from a nonprofit. Sorry to be the bearer of bad news!

In this episode, we unpack what tax exempt status really means (and what it absolutely does not mean). We talk about why starting a nonprofit does not magically make money tax free, how the IRS views giving cash to individuals, and where well-intentioned advice can lead to trouble for nonprofits AND their constituents.

What You'll Learn:

• What tax deductible actually means for donors
• Why nonprofits cannot fundraise for specific individuals
• How giving money to people is treated for tax purposes
• Why starting a nonprofit doesn't prevent you from all taxes
• What private benefit and step transactions are
• Why sometimes the best answer is simply to pay the tax

Bottom line: Nonprofits aren't a magic bullet to absolve you of all tax complications. Usually, starting a nonprofit doesn't make your charitable activities easier – in fact, sometimes it's best just to continue on with the good deeds you already do.

Resources from this Episode

• Previous Episode: What to do when a donor gifts harms more than helps: https://birkenlaw.com/charity-therapy-podcast/155-donor-gifts/
• Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/01/CT156_Transcript.pdf

Connect with Us

• Jess Birken: https://www.linkedin.com/in/jessbirken/
• Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/

Listen & Engage

• Listen on Apple Podcasts | Spotify | YouTube | Amazon Music
• Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review"
• Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story

Stay Connected

• Sign up for the Birken Law Email list: https://birkenlaw.com/signup/
• Follow us on Facebook, Instagram, Twitter