The nonprofit sector is risky business. There are unique laws that apply just to us; we have our own sections of the tax code; and we also must follow employment law, building codes, licensing requirements, and more. Of course, the press loves to go after charities gone wild and personal injury attorneys salivate at the thought of chasing an organization’s assets on the balance sheet.
This is why we asked Justine Cowan to chat with us today about mitigating and insuring against the risk that we face as nonprofit organizations, as board members, and as staff members.
(6:34) How to structure your nonprofit to mitigate risk
(8:00) The importance of annual state and Federal filings
(10:10) The single greatest area of liability and risk for most organizations
(11:52) The importance of training managers to manage
(14:25) The role of mitigating risk with insurance
(17:35) Mitigating risk when working with volunteers
(19:58) The confusion about overtime rules for employees, as well as failure to classify contractors as employees.
(26:14) Reasons the IRS revokes an organization’s tax-exempt status
(30:00) Ensuring you have a strong conflict of interest policy
(34:21) Indemnification of board members as an added protection for your leadership volunteers
(37:29) The possibility of disputes arising around contracts (and lack of contracts)
Justine Cowan’s Website: www.cowannonprofits.com
Episode 40: Finding Pro Bono Legal Counsel with Rachel Spears
About Successful Nonprofits Podcast Host Dolph Goldenburg
Dolph is recognized as a high performance leader in the nonprofit sector who served as a nonprofit CEO for a dozen years and a fundraiser for an additional ten years. Author of the book Successful Nonprofits Build Supercharged Boards, Goldenburg also founded a boutique consulting firm based in Atlanta.
His multi-state consulting practice provides interim executive transition, strategic planning, and organizational development services. The Goldenburg Group's clients have annual operating budgets ranging from $25,000 to over $25 million deployed in the areas of housing, education, civil rights, arts and culture, workforce development, health services, and community-based services.
Connect with Dolph:
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