We want to expand our mission to add various activities — how can we do that and still maintain our tax-exempt status?
By asking this question you have passed the first test of becoming a great risk manager! You are asking whether…
How can we involve the board in risk management?
Board members are often described as being in the crows nest, looking out on the horizon, while the staff leaders…
How can I convince my board that they should be involved in fundraising?
If your board doesn’t take its responsibility to fund raise seriously, then your organization is at risk. A board has…
Do board meetings have to be open to the public?
In some states there are laws known as “Sunshine laws” that require groups to open their meetings to the public,…
Our board members have served for a long time. What’s the risk?
There are legal risks in failing to re-elect board members when their term has expired. State laws restrict the terms of…
What’s the best way to find new board members?
Most board members are recommended by existing board members. It’s best when current board members take the role of identifying…
A board member would like us to hire his daughter for a summer job – Is this a good idea?
Board members are the supervisor of the CEO/executive director – that same executive director may have to tell the board…
Our board members can be indemnified and since they are volunteers they are covered by charitable immunity. Do we need Directors and Officers’ Liability Insurance?
Board members who serve without compensation may be covered by charitable immunity in some states for certain actions, however, charitable…
What governance policies should our board be considering?
In addition to a review of mission, articles of incorporation and bylaws from time to time, the board should…
May board members be reimbursed for their expenses?
There are no laws that would prevent a charity from providing compensation to board members for their board service, but…
What is the role of the audit committee? Do we need one?
The audit function, for those nonprofits that are required to have an independent audit, should be overseen by the board…
Should we find a lawyer, accountant or insurance professional to serve on our board?
Every nonprofit thinks they need an insurance professional, a CPA, and a lawyer on their board, but that is not…
If the organization has not filed its 990 on time, can board members be liable?
It is ultimately the board’s responsibility to ensure that the organization complies with legal requirements, such as the requirement to…
Can board members be personally liable?
Board members are generally NOT liable for the debts of the nonprofit organization when the nonprofit is a corporation. (One…