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John P. Falco Quoted in Chestnut Hill Local Article, 'CHCA Gets 501(c)(3) Status, Prepares for Member Approval'

John P. Falco Quoted in Chestnut Hill Local Article, 'CHCA Gets 501(c)(3) Status, Prepares for Member Approval'

John P. Falco, an associate in the Financial Services Practice Group of Pepper Hamilton LLP, was quoted in the January 13, 2015 Chestnut Hill Local article, "CHCA Gets 501(c)(3) Status, Prepares for Member Approval." The article discusses how Pepper helped the Chestnut Hill Community Association (CHCA) get approved as a Pennsylvania nonprofit 501(c)(3) organization, paving the way for an organizational remake that has been in the works for nearly two years.

The technical re-creation of the CHCA actually required the formation of a new company – a Pennsylvania nonprofit corporation. Hill resident John Falco, an attorney with the firm Pepper Hamilton explained it as follows:

"The task involved spinning out the charitable activities of the [CHCA] from the operations of the Chestnut Hill Local and creating a new nonprofit corporation to assume the charitable activities of the CHCA," he said. "Once the new corporation was created, the CHCA submitted an application to the IRS for status as a public charity under Section 501(c)(3) of the Internal Revenue Code. The 501(c)(3) status was granted in November 2014. While the Community Association activities will be conducted by the new entity, the Chestnut Hill Local will continue to operate under the "old" nonprofit corporation."

Why go 501(c)(3)? Falco said there are three key benefits:

  • exempt the organization from taxes,
  • create more opportunities for public or private grant money that require 501(c)(3) status for eligibility, and
  • allow for the solicitation of tax-deductible contributions "which individuals and organizations are more likely to donate because tax law permits such donors to deduct their contributions from taxable income."

Falco said his firm spent more than 100 hours on the project, all pro bono.

"Pepper took this project on because it fits its pro bono mission," he said. "I was eager to help since I live in the community and it was an opportunity to use my talents to give back."

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