Michelle Craig
Owner
Transcendent Law Group
In my 20-plus years of experience, I have found that the three legal pillars of a thriving nonprofit are: 1) a strong unifying mission 2) an executive director who is committed to that mission and 3) a group of directors who are engaged, vocal and who enjoy a mutually trustworthy relationship with the executive director. To achieve those pillars, the organization should be built on a sound legal infrastructure supported by a strong commitment to legal and financial compliance, human resources policies and procedures, and board policies that inform their legal/fiduciary duties to provide oversight and governance. My most pressing advice would be to take these items seriously and adhere to them rigorously.
Leon Rittenberg III
Shareholder
Liskow & Lewis
The most important personal skill for non-profit professionals is gratitude. For example, Dr. Rochelle Ford, President of Dillard University, took the time recently to write a letter to the editor thanking the community for stepping up to help the university with its electrical problems. Few non-profit leaders show such gratitude. Another essential skill is the ability to raise money which is easier when you have passion for your cause. This fund-raising skill usually originates from people with inter-personal skills and those who build personal relationships. In this emerging era of artificial intelligence, new skills related to utilizing CHAT GPT and other similar platforms and communicating the message and passion online will become an important, but nonexclusive, as wealthy, large donors tend to prefer to connect on a personal level.
Court decisions have created protections for employers who can demonstrate their proactivity when it comes to compliance with employment discrimination and harassment laws. [As a result] even privately held entities (think NFL) got on board and developed compliance programs. Workplace codes of conduct are now commonplace. More and more nonprofits — wary of public scrutiny that might accompany unexpected misconduct within — are minimizing their risks by establishing, embracing and bolstering compliance programs.
Mark N. Mallery, Founding Shareholder at Ogletree Deakins
Chris Kane
Partner
Global Trade, Transportation and Logistics Team Leader at Adams and Reese
Corporate governance hygiene is critical for nonprofits to operate efficiently and effectively. Know and follow your bylaws, maintain corporate minutes, obey tax laws, safeguard charitable assets and donor funds, practice transparency through independent auditing, uphold accountability among staff and board, and train board members for success to carry out the mission. Organizations are stronger with a well-run board. Nonprofits rely on volunteer board members; the more engaged they are, the more you get out of them.
Patrick H. Willis
Associate
Baker, Donelson, Bearman, Caldwell & Berkowitz
Review your governance documents. Articles, bylaws, and policies should provide both stability and flexibility for ease of management. Understand state and federal law. Tax-exempt nonprofits are regulated not only at the federal level, but most states impose regulations that impact your organization’s operations as well. Look into all tax options. While federal tax-exempt status is often the focus, organizations may also benefit from state and local tax exclusions and exceptions. Consult legal counsel. While there are many opportunities for nonprofits, there are also many pitfalls. Engage your attorney early and often to avoid any problems.
E. Fredrick Preis, Jr.
Senior Partner
Breazeale Sachse & Wilson, Labor & Employment Law Section
The major best practice for a nonprofit to reduce the risk of claims, charges and lawsuits is to comply with the same legal requirements that cover a for-profit business, unless their exemption is a core building block such as a religious belief. This means a legal review of personnel policies and documents, providing training on legal issues for management and obtaining legal advice prior to implementing decisions that may cause legal or employee relations problems.
