Whether through forgetfulness, sloppiness, or conscious disregard, a nonprofit’s management can easily make mistakes that violate the requirements of its governing documents. Such mistakes, once [...]
Large gifts to nonprofits sometimes come with strings attached. When a large donor conditions a gift upon also having a voice in management, perhaps with a seat on the board or other meaningful [...]
Nonprofit groups of all kinds, especially churches, often begin their existence as unincorporated associations and only later decide that forming a nonprofit corporation is the right choice for [...]
It’s hard to overstate the importance of reputation to a nonprofit. Donors want to feel good about the organizations they give to. Volunteers prefer to work for organizations they trust and can [...]
Complying with formal notice requirements is an important piece of any organization’s governance. In businesses where legal formalities are given little or no consideration, It can be easy to [...]
When a person with extensive corporate board experience joins a nonprofit’s board the differences can come as a surprise. Many of the rules governing for-profit directors also apply to nonprofit [...]
Social welfare nonprofits are often established to provide a tax-exempt vehicle for organizing around a specific political topic. Under Section 501(c)(4) of the Internal Revenue Code, social [...]
One of the serious mistakes a nonprofit’s management can make is engaging in transactions that tax authorities or donors could construe as self-dealing. A nonprofit’s tax privileges rest in part [...]
Conflicts of interest within a nonprofit’s leadership group can create thorny problems for the organization if they are not properly managed. Undisclosed or unresolved conflicts can lead to [...]
Delegation by Boards of Directors Boards and their officers often fall into habits that define the relationship between the president or CEO and the board. On occasion, these habits will drift [...]