Wild Apricot Expert Webinar: 5 Common Legal Traps for Nonprofits and How to Avoid Them

Wild Apricot Expert Webinar

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5 Common Legal Traps for Nonprofits and How to Avoid Them

Presented by Erin McClarty

Wild Apricot Expert Webinar

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Wild Apricot Expert Webinar

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Wild Apricot Expert Webinar

Wild Apricot Expert Webinar

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Wild Apricot Expert Webinar

Your Presenter

Erin McClarty

5 COMMON LEGAL TRAPS FOR

ERIN MCCLARTY - WILD APRICOT EXPERT WEBINAR

NONPROFITS AND HOW TO AVOID THEM

MY (SHORT, SHORT) STORY

▸GOAL

▸WHY DOES IT MATTER?

5 COMMON LEGAL TRAPS

Legal Trap #1

Forgetting to keep books and records; making them public.

Do you know the bookkeeping requirements for where you’ve registered?

Could mistakes lead you here? (i.e. prison)

What are the publicity requirements?

When, where and how do you have to make records available?

Solutions?

- Have a disclosure protocol in place- Treasurer & Accountant are pivotal - Never give control over to one person - Make publicizing easy

Legal Trap #2

Unintentionally putting board members and officers in danger.

Penalty Taxes

Personal Tax Liability

Lost Tax Status

Voided Indemnity

Voided D&O

Solutions?

- Know when to pause- Calendar all reporting out for the year- Assign topics to board members- Don’t pay unless documents say

Legal Trap #3

Shaky practices with intellectual property.

Contractor Agreement

IP Ownership

License Grant

License Restrictions

License Grant

Photography is the most common occurrence

Solutions?

- Get a contract (vendors and employees)- Cover the who, what, when, where, why and how’s- Don’t be afraid of templates- Use license agreements

Who owns the IP?

Who can use the IP?

Is there a fee for use?

How can the IP be used?

Where can IP be used?

Legal Trap #4

Not adjusting to employment growth.

- FMLA, ADA, ADAAA, OSHA, NLRA, ACA- State specific requirements

- Independent Contractor v. Full-time- Handling EEOC Claims

- Documenting employee performance - Yearly review system

- On-boarding systems- Employment handbooks

DID YOU KNOW?THE TOP CLAIM NONPROFITS

DEAL WITH ARE EMPLOYMENT?

Solutions

- Create on-boarding processes- Manage expectations, and be clear on the rules- Check out labor sites- Make looking at systems for “employees” a priority each year

Legal Trap #5

Floating programs.

- Following program revenue- Following foundation dollars- Following trends- Following specific prerogatives

- Client mistrust- Donor confusion- Lost funding (especially gov’t)- Stretched resources

- Allegations of fraud- Misappropriation of funds- Trustee violations- Breach of formation documents

Solutions

- Have a framework together- Mission statement, mission statement, mission statement- Review the mission and vision against programming yearly- Continuously seek feedback- Don’t be afraid to speak out

Legal Trap Bonus!

A few other traps nonprofits can fall into.

Not paying attention to fundraising requirements

Crummy whistle

blower practices

No contracting “policy”

Not keeping track of lobbying

FINDING ISSUES FRAMEWORK

- Be inquisitive- Don’t doubt yourself- Stick to the basics- Get it down somewhere- Make it an affair

NONPROFIT RESOURCES

- Notations on Nonprofits- Wild Apricot- JD Supra- Nonprofit Finance Fund- National Council of Nonprofits

THE END.

CONTACT

erin@emcclartypllc.com

www.emcclartypllc.com

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#1 Membership Management Software Provider

Wild Apricot Expert Webinar

Build. Connect. Grow. Membership & more.

5 Common Legal Traps for Nonprofits and How to Avoid Them

Presented by Erin McClarty

THE END