Ask a Nonprofit Lawyer Part II: Governance & Bylaws May 10th, 6-7:30pm RSVP Here Are you a nonprofit board member who wants to better understand what your fiduciary duties are? Are you confused about what a nonprofit board’s roles and responsibilities should be versus those of management? Or...
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.
Foreign Corporations and the Application of California Nonprofit Laws
A foreign corporation, a corporation formed under the laws of another state, that conducts business in California may be subject to more of California’s laws and jurisdiction than one might think. Generally, activities occurring in California are regulated by California laws (e.g., employment, health and safety, revenue and taxation)....
Nonprofit Compensation: Tips on Using Comparability Data
Executive compensation can be a tricky area for the board of a nonprofit organization. As we’ve discussed previously, the recommended process for determining the appropriate compensation package for an executive of a nonprofit organization involves conducting a review of what similarly-sized organizations, in the same geographic area, offer their...
Attorney/Director: Issues for Attorneys Serving on Nonprofit Boards
Attorneys may be of great value to nonprofits when serving on nonprofit boards. They bring to the board a special set of knowledge, skills, perspectives, networks, and experiences, including an ability to spot and address particular issues and problems. For such reason, many nonprofits actively seek out attorneys to serve...
New California Regulation Poses Threat to Nonprofits Not Properly Registered
Effective as of January 1, 2016, new regulations related to administrative enforcement of violations of the Supervision of Trustees and Fundraisers for Charitable Purposes Act go into effect. We wrote about the regulations when they were first proposed (see our post explaining our opposition to the regulations here). Also...
BoardSource Leadership Forum 2015
New Orleans The 2015 BoardSource Leadership Forum (BLF) was held in New Orleans on November 9-10 with more than 900 board members, chief executives, staff, and nonprofit professionals attending to discuss the newest thinking and best practices in nonprofit governance. Marking the 10th anniversary of Hurricane Katrina, BLF 2015: Leading Together...
Women Leaders Still Make Less Than Their Male Counterparts…Even in the Nonprofit Sector
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...
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...