GuideStar recently released its 2015 Nonprofit Compensation Report, an annual report compiled using data reported by exempt organizations to the IRS for 2013. Unfortunately, the Report’s findings regarding women leaders in the sector are not at all encouraging. According to a list compiled by the author of the...
BOARDS / GOVERNANCE
An engaged board can be one of the most important organizational assets of a nonprofit. But nonprofit boards are often underutilized and are not always effective in significantly advancing an organization’s mission. Educating boards and executives about their legal duties, practical steps to take to effectively meet those duties, and best practices in mitigating exposure to organizational and personal liability/harm is key to establishing board engagement and effectiveness.
Executive Compensation – The Legal Issues
Determining the appropriate amount of compensation to pay an executive is one of the most important decisions a board is asked to make. Board members must balance budgetary concerns with the need to find a qualified candidate. Traditionally, it was not uncommon for nonprofits to expect executives to work...
A Board’s Role in Hiring the Executive
On Nonprofit Radio this Friday, there will be a repeat broadcast of my conversation with Tony Martignetti on the subject of the board’s role in hiring the executive. In connection with the initial broadcast, I previously posted 10 Tips for Boards on executive succession. Here, I’d like to discuss further...
Nonprofit Law 101 for Journalists
Prompted by a conversation among nonprofit leaders about the public’s and media’s general lack of knowledge about nonprofits, this article targeted at journalists briefly discusses some basics of federal tax laws applicable to 501(c)(3) organizations and common state corporate and charitable trust laws applicable to nonprofits. Internal Revenue Code Section...
Where Nonprofit Boards Fall Short
A few months ago, Harvard Business Review published a great piece by Dominic Barton and Mark Wiseman titled Where Boards Fall Short. In the piece, the authors examined the ways in which boards of directors are failing their organizations and discussed areas in which we should begin to make...
The Avengers, a Nonprofit Corporation
In Avengers: Age of Ultron, Captain America made reference to bylaws in stating that there were no restrictions against relationships between members. This of course proves that The Avengers are not only a superhero team that saves the world on a regular basis but also a nonprofit corporation. Here is the...
Why Nonprofit Governance is Different from For-profit Governance
The basic legal duties of care and loyalty apply whether you’re a board member of a nonprofit or for-profit corporation, but what you’re responsible for overseeing may be very different. Fiduciary Duties The board of directors of a corporation, whether nonprofit or for-profit, is ultimately responsible for the management...
Nonprofit Law: Hot Topics – CEB / CLE
On February 26, 2015, Erin and I recorded a webinar for Continuing Education of the Bar – California on Nonprofit Law: Hot Topics. It’s an intermediate-level one-hour CLE program available here. Providing counsel to nonprofits requires knowledge and understanding of corporate and tax laws that are often not intuitive or...
Independent Sector’s Principles for Good Governance
The legal duties of a board member go beyond ensuring that the organization complies with applicable law. A board member must act with reasonable care and good faith in the best interests of the organization. The best interests of a 501(3)(3) organization are related to its performance of its charitable, educational,...
CEB: Nonprofit Law: Hot Topics – Livecast on Thu, 2/26, at noon
Erin and I will be presenting a program on Nonprofit Law: Hot Topics for Continuing Education of the Bar (CEB) – State Bar of California livecast on Thursday, February 26 from noon to 1 p.m. The following description of our program is on the CEB website. Providing counsel to nonprofits...