Nonprofit Law and Services
Starting or running a nonprofit in Montana means wearing a lot of hats. Legal shouldn't be one of them.
Most nonprofit leaders didn't get into this work because they love paperwork. They got into it because they care about something — a community, a cause, a gap that needed filling. Legal compliance, board governance, and HR policies can feel like they pull you away from that.
The goal of good nonprofit legal counsel is to make those things feel less like obstacles and more like infrastructure — the kind that lets your organization actually grow and do its best work without running into avoidable problems.
Services We Offer:
Employment & HR
Nonprofit employment comes with its own set of complications — smaller teams, tighter budgets, blurred lines between staff and volunteers, and the unique pressure of managing people who are deeply personally invested in the work. Getting the legal side of employment right matters as much here as it does in any business.
We help nonprofits draft employee handbooks and HR policies, structure employment agreements and offer letters, properly classify workers and volunteers, navigate difficult termination or disciplinary situations, and address wage and hour compliance. We also advise on executive director employment agreements and compensation structures.
Compliance & Ongoing Obligations
Maintaining tax-exempt status is not a one-time event. Nonprofits have ongoing filing requirements — annual reports with the Montana Secretary of State, IRS Form 990 obligations, and in some cases charitable solicitation registration requirements. Letting these slip can put your status at risk and create problems that are expensive to fix.
We help organizations understand what they're required to do, develop systems to stay current, and address compliance gaps when they're discovered. We also advise on gift acceptance policies, unrelated business income issues, and other questions that come up as an organization evolves.
Board Governance
A nonprofit's board is its legal backbone — and also one of its most common sources of friction. Unclear governance documents, poorly defined roles, undocumented decisions, and conflicts of interest that weren't caught early can all create serious problems as an organization grows.
We help nonprofits develop and maintain governance structures that actually work: reviewing and updating bylaws, drafting conflict of interest policies, advising on board member roles and responsibilities, supporting executive directors navigating board dynamics, and helping organizations work through governance disputes before they become crises.
Nonprofit Formation & 501(c)(3) Applications
Starting a nonprofit involves a lot more than filing paperwork with the state. You'll need to choose the right structure, draft articles of incorporation, create bylaws that actually govern how your organization operates, and apply for federal tax-exempt status with the IRS — a process that has real legal nuance and takes longer than most people expect.
We guide founders through every step: entity formation in Montana, articles and bylaws tailored to your mission and structure, EIN registration, and preparation of your 501(c)(3) application. We'll also advise on common mistakes that cause delays or complications down the road.
Flat-fee pricing available for nonprofit formation packages.
Contracts & Agreements
Nonprofits sign a lot of paper. Grant agreements, vendor contracts, fiscal sponsorship arrangements, memoranda of understanding with partner organizations, sponsorship and event agreements, facility use contracts — and most of it gets reviewed quickly or not at all.
We draft and review the contracts that govern your organization's relationships, with an eye toward protecting your mission, your assets, and your people. We also advise on grant agreement terms that sometimes carry more strings than organizations realize before signing.
General Counsel Services
Most of the legal questions nonprofit leaders face don't warrant hiring an attorney for a full project — they just need a trusted advisor they can call. Is this contract worth signing? How do we handle this employee situation? Can we accept this gift with these conditions? What do we do about a board member who's creating problems?
We offer ongoing general counsel services tailored for nonprofits: a relationship-based model where we get to know your organization, your documents, and your goals, so we can give you useful answers quickly rather than starting from scratch every time.
Contact us to discuss retainer arrangements.
Legal advice from someone who's been on your side of the table.
Before founding Saddle Peak Law, Brittany spent nearly a decade as Director of Operations for a Bozeman nonprofit — managing employees, navigating board dynamics, working through HR situations, reviewing and signing contracts, advising on compliance, and helping guide the organization through periods of growth and change.
She knows what it's like to sit across from an attorney and need a straight answer, fast. She knows the pressure of a board meeting in two days and a governance question that can't wait. She knows how hard it is to manage employment issues in a small, mission-driven team where everyone knows everyone.
That experience informs everything about how she advises nonprofit clients. She's not going to give you a technically correct answer that doesn't account for how your organization actually works. She's going to give you practical guidance from someone who has been in the room.
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Frequently Asked Questions
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No — but the process has enough legal nuance that most organizations benefit from having one. The 501(c)(3) application in particular requires careful attention to how your organizational documents are drafted, what activities you describe, and how you represent your structure to the IRS. Mistakes at the formation stage can cause delays, rejections, or problems that compound as the organization grows. Getting it right from the start is cheaper than fixing it later.
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It varies. Standard IRS processing times have ranged from a few months to over a year depending on the complexity of the application and IRS workload. Organizations that qualify can apply for expedited processing, and there are also streamlined filing options for smaller organizations. We'll help you understand which path makes sense for your situation and what to expect on timing.
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Your bylaws are your organization's governing document — they should cover board structure and size, how directors are elected and removed, meeting requirements and quorum rules, officer roles and responsibilities, how decisions are made, conflict of interest provisions, amendment procedures, and dissolution language. Generic bylaw templates often miss important specifics or don't match how the organization actually intends to operate. We draft bylaws that are practical, compliant, and built for your organization.
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In most nonprofit structures, board members serve as volunteers — but there's nuance. Board members can sometimes be reimbursed for expenses, and in certain structures they may receive compensation for services rendered in a separate capacity. The key concern is private inurement — nonprofits can't let their net earnings benefit private individuals, including board members, in ways that aren't reasonable and documented. We help organizations navigate these questions carefully.
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This is a more complicated question than it sounds. The IRS and Department of Labor have specific rules about when someone performing services for an organization must be classified as an employee — and being a nonprofit doesn't create an exemption. Misclassifying workers as volunteers when they're actually performing employee-type roles can create real liability. We help nonprofits think through their workforce structure and get classifications right.
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Montana requires charitable organizations soliciting donations in the state to register with the Secretary of State's office, with some exceptions. If your organization is actively fundraising — whether through events, online campaigns, or direct asks — it's worth confirming whether you're required to register and whether you're current. We can help you assess your obligations and get into compliance.
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Possibly less than a larger organization, but more than most people assume. Even small nonprofits can run into governance disputes, employment questions when they bring on their first staff member, contract issues with vendors, or compliance gaps that become problems later. The earlier you get the foundational documents right, the easier everything else becomes. We work with organizations at all stages — including very small ones — and we can scope our involvement to what actually makes sense for where you are.
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Fiscal sponsorship is an arrangement where an established 501(c)(3) organization sponsors a project or initiative that doesn't yet have its own tax-exempt status — allowing donors to make tax-deductible contributions in support of that work. It's commonly used by emerging projects, artists, advocates, or community groups that aren't ready to form their own nonprofit. We can advise on whether fiscal sponsorship makes sense for your situation and help structure the arrangement properly.