Nonprofit Organizations

The Nonprofit Organizations Practice Group works closely with leaders of nonprofit entities to serve as advocates and counselors in pursuing each organization’s public mission.

Our nonprofit clients include hospitals and other healthcare providers, educational institutions, energy cooperative corporations, trade and professional associations, advocacy groups, private foundations, charitable trusts, social welfare organizations and other types of nonprofit and charitable organizations.

Our team understands that nonprofit entities face unique legal issues throughout their corporate existence. We guide entities through the tax-exempt application process, as well as ongoing tax compliance issues. We counsel organizations on nonprofit corporate governance, employment and compensation issues, mergers and other business transactions, tax-exempt financing and the wide range of healthcare regulatory and other regulatory issues that, if unattended, can expose nonprofits to costly investigations and government-imposed penalties.

Our multi-disciplinary practice group includes experienced attorneys from across the firm’s practice groups, including Corporate & Securities, Employee Benefits, Healthcare, Labor & Employment, Litigation & Dispute Resolution, Public Finance, Tax, and Trusts & Estates.

Areas of Focus

  • Corporate & Business
    • Organization and formation of nonprofit entities.
    • Corporate governance and ethics issues.
    • Joint ventures and other business transactions involving nonprofit and for-profit entities.
    • Corporate mergers, reorganizations and restructurings.
    • Contractual matters.
    • Antitrust compliance.
  • Employee Benefits
    • Executive compensation arrangements.
    • Retirement, health and welfare plans and other employee benefits.
    • Employment agreements.
  • Healthcare
    • Academic medical center regulation.
    • Horizontal integrations, clinically integrated networks and hospital-physician collaborations.
    • Compliance programs and policies, including fraud and abuse regulations.
    • Conversions and sales of assets and resulting foundations.
    • Joint ventures and joint operating arrangements/public-private partnerships.
    • Physician practice acquisitions.
    • Regulatory issues such as the 340B Drug Program, Section 501(r) regulations and the Physician Payments Sunshine Act.
    • Risk management arrangements.
  • Labor & Employment
    • Employment counseling, training and auditing.
    • Employment litigation including all aspects of management-side employment law as well as covenant-not-to-compete litigation.
    • All aspects of management-side labor law.
    • Contract negotiation and interpretation – executive level, confidentiality and restrictive covenant agreements, and collective bargaining agreements.
  • Litigation & Dispute Resolution
    • Audits and internal and government investigations.
    • State and federal compliance.
    • State and federal government agency proceedings.
    • Antitrust.
    • Lobbying and political activities.
    • Business disputes, restructuring and bankruptcy.
  • Public Finance
    • Tax-exempt financing for 501(c)(3) organizations, including healthcare providers, universities and colleges, secondary educational institutions and other nonprofit organizations.
    • IRS audits of tax-exempt financing.
    • Ongoing compliance with tax-exempt bond requirements.
  • Tax/Trust & Estates
    • Public charities and private foundations.
    • IRS exemption process.
    • Private inurement/intermediate sanctions.
    • Unrelated business taxable income (UBTI).
    • Joint ventures.
    • Tax issues related to charitable giving programs and other fundraising activities.
    • Excise taxes on prohibited transactions.
    • Regulation of charitable solicitation.
    • State and local taxes, including property tax exemptions.
  • Creation of the corporate structure for Mosaic Changemakers – our team helped the new organization obtain tax exempt nonprofit status and transfer the program to a new entity, and provided advice for formation and business practices

    Our pro bono team worked with Renata Soto, Senior Fellow at the Harvard University Advanced Leadership Initiative and co-founder and...
    Read More
    Client Type: Pro Bono
  • Served as bond counsel to Emerald Academy in connection with a tax exempt bond issue

    A team of Bass, Berry & Sims attorneys from the Knoxville office served as bond counsel to Emerald Academy in...
    Read More
    Client Type: Nonprofit, Pro Bono
  • Bond counsel and borrower counsel to Covenant Health in connection with the issuance of over $600 million in taxable and tax-exempt debt to finance and refinance its healthcare facilities in Tennessee

    We served as bond counsel and borrower counsel to Covenant Health in connection with the issuance of over $600 million...
    Read More
    Client Type: Nonprofit
  • Served as bond counsel in connection with a tax-exempt financing for the Change Center, a nonprofit organization that is constructing a youth recreation center in the inner city of Knoxville

    We served as bond counsel in connection with a tax-exempt financing for the Change Center, a nonprofit organization that is...
    Read More
    Client Type: Nonprofit
  • Representation of The Brattleboro Retreat, an in-patient addiction treatment facility located in Brattleboro, Vermont, in a False Claims Act (FCA) lawsuit, resulting in the district court granting the Retreat’s motion to dismiss

    We served as lead counsel representing a not-for-profit in-patient addiction treatment facility located in Brattleboro, Vermont, in a qui tam...
    Read More
  • Served as both bond counsel and underwriter’s counsel for nonprofit colleges and universities

    We have served as both bond counsel and underwriter's counsel in approximately $500 million of financings for nonprofit colleges and...
    Read More
    Client Type: Nonprofit
  • Representation of one of the largest nonprofit hospital systems in the country in developing an out-of-network reimbursement strategy

    We represent one of the largest nonprofit hospital systems in the country in developing an out-of-network reimbursement strategy.
    Read More
    Client Type: Nonprofit
  • Lead counsel to a world-renowned children’s research hospital in its efforts to obtain a Certificate of Need (CON) to replace and relocate the majority of its existing inpatient facilities at its campus in Memphis, Tennessee

    We served as lead counsel to a world-renowned children's research hospital in its efforts to obtain a Certificate of Need...
    Read More
    Client Type: Nonprofit
  • Lead counsel representing Erlanger Medical Center in DOJ/HHS-OIG investigation arising from qui tam lawsuit alleging violations of Anti-Kickback Statute, Stark Law, and Corporate Integrity Agreement. After government declined intervention in case, federal district court ruled that relator’s claims were barred by the public disclosure bar. Reported decisions: U.S. ex rel. Stratienko v. Chattanooga-Hamilton County Hosp. Auth., 958 F. Supp. 2d 846 (E.D. Tenn. 2013) & U.S. ex rel. Stratienko v. Chattanooga-Hamilton County Hosp. Auth., 2014 WL 7912981 (E.D. Tenn. Mar. 28, 2014)

    We served as lead counsel to Erlanger Medical Center (a medical center owned by Chattanooga-Hamilton County Hospital Authority) in a...
    Read More
  • Represented Alive Hospice in a joint venture between the nonprofit provider and Aspire Health

    We represented Alive Hospice in a joint venture with Aspire Health. The venture is called Aspire Health Medical Partners of...
    Read More
    Client Type: Nonprofit
Audrey J. Anderson
Counsel
Robert E. Cooper Jr.
Member
R. Todd Ervin
Member
Lauren M. Gaffney
Member
Nicholas D. Gaffney
Member
Tim K. Garrett
Member
B. Riney Green
Member
Robert W. Horton
Member
Angela Humphreys
Member
Gene L. Humphreys
Counsel
K. Brianne  Kerbyson
Associate
G. Mark Mamantov
Member
Russell A. Miller
Member
Fritz Richter, III
Member
Blaine H. Smith
Member
Russell E. Stair
Member
David A. Thornton
Member