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governance

Who owns a nonprofit?
Governance

Who Owns a Nonprofit Corporation?

Let’s be clear about one thing. No one owns a nonprofit corporation.[1]

While there is no outright ownership, there is control. One of the fundamental questions I ask when forming a new nonprofit corporation is how board members will be selected. This is a key question because those who hold the power to select board members retain the ultimate authority over the corporation.

The possibilities are limited by the nonprofit corporation statute in the state where the corporation is domiciled.

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What is an Endowment
Grantmaking and Gift Planning

What is an Endowment?

Black’s Law Dictionary, 9th ed., defines an endowment as: A gift of money or property to an institution (such as a university) for a specific

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Board Quorums, Non-Profit Strategy, and Technological Innovation

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. 

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self-policing can lead to catastrophic failure
Governance

Self-Policing Abuse Cases Can Lead to Catastrophic Failure by Kimberly Witherspoon

Self policing allows serious problems to fall through the cracks. The most significant failure of self-policing seems to be a knee-jerk desire to protect the organization rather than the purported victim. This results in a failure to report allegations of abuse to the authorities, and instead be willfully blind to crimes committed against children. Institutional behaviors of denial, irresponsibility, cover-ups and possible criminal behavior seem to thrive in a self-policing organization. Jerry Sandusky’s case is a clear example of this willful blindness. Tolerating or ignoring abuse to children under the care of charitable organizations that are supposed to nurture and protect them undermines the noble purpose of such entities and thus weakens the organization.

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