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Should a new coalition set up as a formal legal entity to protect the organizers? If so, does it matter if it is an LLC or non-profit?

            Thanks for your question about coalitions. We have been members, leaders, and researchers of many different community coalitions for several decades, and we cannot recall any coalition that has set itself up as a formal legal entity in order to protect the organizers.
          Some coalitions, however, may seek legal non-profit status, or legal federal tax-exempt status for grant or funding purposes. (Note that non-profit and tax-exempt status are two different things, and that state laws on non-profits may vary.)
          Beyond those situations, based upon on our experience we do not feel that such action is usually necessary.  But if you feel special circumstances may apply in your case, you might consider consultation with legal professionals, who would have more legal expertise than we do. 

Question Date: Wed, 11/16/2022