While many nonprofits may be enjoying the surge in volunteerism, relying on volunteers can come with its share of risks. Still, abiding by a few key practices can ensure that both the nonprofit organization and its volunteers get the most out of the experience.
Blackbaud is familiar to many nonprofits and universities as one of the world’s leading cloud software companies for fundraising, relationship, and financial management. Now they are in the limelight after a highly publicized ransomware attack in which perpetrators obtained a copy of a subset of data from its Raiser’s Edge and NetCommunity products that track clients’ donors and fundraising activities. Although Blackbaud maintains that no personal information (such as credit card numbers, banking information, or social security numbers) was compromised in the attack, Blackbaud users impacted by the breach have since filed a class-action lawsuit for negligence, breach of contract, and other allegations.
The unexpected has increasingly become¦.well, expected. And failure to adequately plan for anticipated risks can subject directors to scrutiny for breaching their fiduciary duties. Having a business continuity plan is increasingly important; not only for ensuring the continued operation of essential services but also to shield directors from liability for failing to plan for such disruptions. Here’s what you need to know:
Business interruption insurance is most commonly designed to replace lost income in cases where a business premise is physically damaged or where access to the insured’s property is prohibited by closure orders from a civil authority because of damage to property surrounding the insured’s business.
Fiscal sponsorship is when a nonprofit organization accepts tax-deductible donations on behalf of another organization that does not have 501(c)(3) status. Solicitations are made in the name of the fiscal sponsor and therefore permit the sponsored project to rely on the sponsor’s IRS determination letter, solicitation registrations, etc.
Your Privacy and Legal Notice Webpage cannot be a last-minute matter anymore but must be a prominent feature on your entire website and be composed of words that the average user can comprehend without the need for a lawyer.
Many non-profit’s use the 51% benchmark for a quorum as a concession that directors will not be able to attend all meetings, but having a majority of board members in attendance for official business ensures a representative cross-section of participation which will not simply reflect the will of a very small clique of directors. However, organizations that value strong hands-on participation by board members may set a higher quorum requirement to encourage meeting attendance and broader participation.
Beginning January 1, 2020, updated salary thresholds for overtime will become law, resulting in over 1 million Americans becoming eligible for overtime pay through the
The main potential problem areas for nonprofits regarding private inurement are: 1) Compensation agreements for executive employees or trustees; 2) Business relationships with entities in which an organization insider or insider’s family member has an interest; and 3) Benefits paid to an insider or a member of the insider’s family as a member of the charitable class the organization serves. Fortunately, there are steps that non-profits can take to ensure these improper benefits do not occur.
Nonprofit bylaws govern the internal operations of the organization. Too many nonprofits make the mistake of ignoring their bylaws. In reality, the bylaws don’t matter
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.