Editor’s note: Dentons’ chief legal officer John Koski wrote this piece in response to questions surrounding the verein model that were raised in the lawsuit covered here.
Referring to a law firm, accounting firm or other organization as a “verein” doesn’t tell you much by itself. It’s like characterizing an organization as “tax exempt.” While that describes a particular organizational structure, the definition ignores every other aspect of the organization’s mission, purpose, and culture. Tax-exempt organizations come in thousands of variations, from a neighborhood after-school program to, until recently, the National Football League. All are 501(c)(3)s—but, so what?
