Legal Services

Corporate Governance, Director Duty and Accountability

Many non-profit organizations struggle with the myriad aspects of legal compliance. Their board members are often bewildered by the complex laws that impose certain duties on them. Despite these obligations, the law also provides protections from liability when boards act in an ethical and accountable manner. The bottom line: Do not attempt to navigate the ever-changing tax landscape without help from a trusted legal partner at The Law Firm for Non-Profits.

If you’re on the board or an executive of a non-profit organization, you need to be aware that:

  • Unlike businesses, non-profits are governed by a board of directors in accordance with state law and the organization’s governing documents or articles and bylaws;
  • All of a non-profit’s activities are regulated by exempt organization tax law;
  • A non-profit has no owners; and
  • If an organization is not functioning within the scope of the applicable laws, there can be severe penalties and consequences for both the directors and the organization itself, including personal fines and revocation of tax-exempt status.

We support and guide people and non-profits in these areas:

  • Guidance on self-dealing transactions
  • Compensation to insiders
  • Prevention of excess benefit transactions
  • Review of highly-paid executive compensation
  • Prevention of unlawful private benefits and private inurement
  • Board member liability
  • Board member fiduciary duty
  • Establishing and complying with “best practices” procedures and standards
  • Meeting legally mandated public disclosure requirements
  • Holding boards and staff to the highest levels of accountability

Contact The Law Firm for Non-Profits to learn more about how we can help in
launching, guiding or advising your tax-exempt, non-profit organization.