Charities Consider Role for Audit Committee
Although Sarbanes-Oxley rules apply only to publicly traded businesses, nonprofits are beginning to look to its standards for "best practice" guidelines.
Articles
Term Limits Are For Cowards
Arbitrary end of service assures that organizations lose some of their best talent
Boards Should Build Diversity For Maximum Performance
Varied perspectives can improve fundamental management decisions
Preparing Minutes of Board Meetings Is Usually More Art Than Science
Minutes document formal Board actions and provide collective journal of corporate history
Charities Often Restructure to Protect Corporate Assets
Creation of a separate foundation to hold reserve assets provides protection and flexibility for new programs
How to Prevent Piercing the Corporate Veil
Courts have frequently permitted creditors to impose liability on a parent organization for actions of a subsidiary when "fairness" requires the disregard of separate entities.
LLCs Becoming Entity of Choice for Subsidiaries
Single member limited liability companies, as "disregarded entities," have instant exemption; joint venture LLCs may qualify if all members are charities
The Lawyer on the Board: Playing a Dual Role
Both parties should understand the ethical limitations on the attorney’s conduct when wearing two hats in board deliberations.
Barnes Audit Shows Board Failure to Act
Report shows personal acrimony, failure to follow approved policies, And failure to exercise basic oversight responsibilities in many years
Spitzer Challenges Grasso’ Salary as “Objectively Unreasonable”And Obtained by Incomplete, Inaccurate, and Misleading Process
Head of NYSE compensation committee is also charged with breach of fiduciary duty for failing to advise Board on entire package
Articles of Incorporation Establish Basic Form of Nonprofit Corporations
State laws and IRS require certain provisions; including additional terms is primarily a matter of style
Bylaws Function as “Constitution” Of Nonprofit Corporations
Regulation of corporate governance demands as much care and thought as the Constitution of a country
Charities Have New Opportunities, Responsibilities in Fundraising Under Pension Act
Fundraisers report surprising interest in IRA rollover, but won’t generally face new responsibilities until January
Corporations Have Special Rules on Contributions
Many in-kind contributions may be deducted as ordinary business expenses; certain gifts of inventory qualify for enhanced deduction above cost basis.
IRS Finalizes Regs Covering Sponsorship
Payments will be considered charitable contributions where there is no arrangement that the sponsor will receive 'any substantial return benefit in exchange for the payment'
IRS Proposes Regulations for Travel Tours
Key to taxability of income is the amount of time participants spend on actual instruction and education
Be Careful Handling Gifts with Strings Attached
Miscalculations can create both legal and public relations problems if development officers fail to find the right balance for gifts with restrictions
Six Ways to Jump Start Your Planned Giving
Offering potential donors simple ways to make relatively small commitments may encourage them to make more significant gifts when they do their estate plans
Using a CRUT for Stock Options Can Be a Strategy That Sells Itself
Planning testamentary disposition of non-qualified deferred compensation can provide a virtually no risk technique for younger donors
IRS Expands Availability of Flip Unitrusts
Final regulations permit switch to fixed percentage payout in certain situations outside the control of the trustee, and give one-time option for reformation