Starting or running a nonprofit? Understanding the difference between public charities and private foundations is critical for compliance, fundraising, and long-term impact. In this episode of the Nonprofit Counsel Podcast, host May Harris sits down with attorney Danika Mendrygal, founder of Mendrygal Law, to unpack nonprofit law essentials, IRS pitfalls, and practical compliance strategies for leaders navigating governance and fundraising across state lines.

What You Will Learn in This Episode 

• ✅ The key differences between public charities and private foundations, and why they matter

• ✅ The risks of misclassifying your nonprofit and the pitfalls of the IRS 1023-EZ form

• ✅ Why state-by-state fundraising compliance is complex—and how to avoid costly mistakes

• ✅ Practical tips for new private foundations on avoiding related-party rule violations
  
  

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→ https://nonprofitcounsel.com/leadership-accelerator

Key Timestamps

• 00:00   Meet Danika Mendrygal, founder of Mendrygal Law

• 02:10   From pro bono assignments to exempt organizations law

• 06:14   Why nonprofits are moving from California to Texas

• 10:02   The high costs of unnecessary state registrations

• 14:00   Understanding public charities vs. private foundations

• 16:35   The dangers of the IRS 1023-EZ form

• 22:03   Key compliance tips for private foundations

• 30:20   Why nonprofit leaders must prioritize communication with their attorneys

• 32:25   Trusted IRS and state attorney general resources
  
  

Key Takeaways 

🔷 Classification matters – Public charities and private foundations face very different compliance rules under nonprofit law.
🔷 IRS shortcuts can backfire – The 1023-EZ “let the IRS decide” option is risky.

🔷 State compliance is not one-size-fits-all – Every state has unique rules, so governance and registration decisions must be made carefully.
🔷 Communication saves money – Talking with your attorney before major changes ensures compliance with nonprofit law and avoids costly mistakes.

Guest Bio

Danika Mendrygal is the founder and CEO of Mendrygal Law, PLLC, a boutique Dallas-based firm serving nonprofits throughout Texas. With more than 20 years of experience in nonprofit law and exempt organizations, she has built a women-led team advising private foundations, public charities, and mission-driven organizations on compliance, fundraising, and governance best practices.

Resource Links

• For Profit Law Group - Website - https://www.fplglaw.com

• Nonprofit Counsel - Website - https://www.nonprofitcounsel.com/

• Mendrygal Law - Website - https://mendrygallaw.com/

• Danika Mendrygal - LinkedIn - https://www.linkedin.com/in/dmendrygal

#NonprofitLaw #NonprofitCompliance #PrivateFoundations #PublicCharities #NonprofitLeadership #FundraisingCompliance #NonprofitCouncilPodcast