Duty of Care Archives - Charity Lawyer Blog

The Pitfalls of Delegation (and how to avoid them)

Delegating activities to committees and other qualified individuals can be helpful for nonprofit boards that are short on the time or expertise needed to carry out certain functions. For example, nonprofit boards typically delegate the day to day management of the organization to officers such as the C.E.O./Executive Director. Boards also delegate specific tasks to committees who can devote more time to particular matters.

April 6, 2020 No Comments

Recommended Nonprofit Governance Policies

Nonprofits are increasingly subject to growing regulatory burdens and high expectations from donors, clients, and the public. One way nonprofit boards can promote compliance with

July 1, 2019 No Comments

Nonprofit Embezzlement – What to Do When Lightning Strikes

A nonprofit embezzlement incident is emotionally devastating, causing nonprofit leaders to question their own judgment and management ability. It erodes the public’s trust, jeopardizes grants

May 6, 2019 1 Comment

Governance

Fiduciary Responsibility of Nonprofit Boards

Nonprofit board members must understand and fulfill their fiduciary duties or they expose the nonprofit they serve and themselves to risk.

April 8, 2019 No Comments

Governance

Nonprofit Board Oversight

A nonprofit’s board of directors is legally responsible for exercising the care an ordinarily prudent person in a like position would exercise in overseeing the organization’s operations. This includes the organization’s finances and legal compliance.

April 6, 2018 No Comments

News and Avoiding Scams

IRS Guidance Breathes New Life Into Mission-Related Investing

Foundations are required to expend approximately 5% of their assets for charitable purposes each year. The other 95% is invested to generate distributable income for future years. Historically, foundations have struggled with the idea of making riskier investments that further their charitable purposes, but do not qualify as a PRI because a significant purpose of the investment is the production of income or the appreciation of property.

September 21, 2015 No Comments

Nonprofit Tax

Reporting Diversions of Nonprofit Assets

The Washington Post has identified over 1,000 nonprofit organizations that have reported a significant diversion of assets. Its important to note that there are over 1,616,000 tax-exempt nonprofits in the U.S. today; thus, these filings represent less than 1% of tax-exempt nonprofits. It’s also interesting to note that a quick review of Arizona’s list includes only 21 organizations – most of which reported the diversions in a clear, transparent, and confidence inspiring manner.

October 29, 2013 No Comments

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