Research Institutions Specialty Areas

Most research institutions are formed as separate nonprofit organizations or function as an integral part of another nonprofit organization. The Tax-Exempt Organizations (“TEO”) Team at Quarles & Brady combines sophisticated technical knowledge and practical experience as it advises nonprofit research institutions and their affiliates on the unique tax and governance issues faced by organizations.

The TEO Team regularly assists its research institutions clients with:

• Applying for and maintaining tax-exempt status;
  
  
• Defining the scope of “scientific” research in a tax-exempt context;
  
  
• Setting appropriate compensation packages for researchers and executives;
  
  
• Planning for the unrelated business income tax (“UBIT”) as it relates to research activities, including preserving some of the special exemptions and exclusions from UBIT for scientific research and certain research institutions;
  
  
• Structuring joint ventures and for-profit subsidiaries for commercialization activities;
  
  
• Drafting agreements between research institutions and their affiliated organizations regarding the allocation of shared costs; and
  
  
• Creating appropriate governing documents and policies.

The TEO Team works cooperatively with the other members of Research Institution Industry Team to provide a coordinated approach to advise these organizations. For example, members of the TEO Team will work closely with Q&B’s Intellectual Property attorneys to make sure that license agreements are structured in a way that preserves the institution's rights in the property, protects its tax-exempt status and minimizes its UBIT exposure.

For more information on our Research Institutions: TEO Team, please contact Janice Rodgers at (312) 715-5034 / or your Quarles & Brady attorney.