Corporate Dissolutions: Administrative vs. Voluntary
Administrative and voluntary dissolution are two ways to end a nonprofit corporation’s existence. Best practice is to voluntarily dissolve.
Administrative and voluntary dissolution are two ways to end a nonprofit corporation’s existence. Best practice is to voluntarily dissolve.
Conflicts inevitably arise. Nonprofits should adopt a Conflict of Interest Policy to navigate these situations.
When Board members gather, what are ostensibly shared interests and goals may in fact consist of different or divergent underlying priorities making it difficult to
Under this definition of an electronic signature, responding yes or no in response to a question regarding whether a measure is approved suffices as an electronic signature for purposes of a unanimous written consent. This change makes it much easier to obtain approval of resolutions particularly with regard to time sensitive matters.
Failing to Understand Fiduciary Duties. When you volunteer to serve as a director or officer of a nonprofit, you accept the responsibility to act with the duties of good faith, due care and loyalty. You also accept the potential liability for failing to fulfill those duties. Increased scrutiny from the I.R.S., Congress, state attorneys general, the Department of Justice, donors and the media require vigilance at every step. It is no longer sufficient to rubber stamp committee or staff recommendations or to simply abstain from dicey decisions. Today, board service comes with real responsibilities and real consequences for those that fail to live up to them.
Most states require you to register your organization if you solicit donations from their residents. Many states also require registration if your organization collects substantial or ongoing donations from their residents, even if you aren’t specifically targeting donors in that state. Download our comprehensive list of each state’s requirements.
Download our free guide to learn about the many elements needed to run a successful nonprofit organization, as well as how to avoid common pitfalls and mistakes.