Jacobowitz & Gubits corporate attorneys often serve in a general counsel capacity to not-for-profit organizations of all kinds in the Hudson Valley and Upstate New York. Our experience with the formation, operation and financing of nonprofits throughout the region can help organizations avoid conflicts while ensuring that directors, executives and members understand their respective roles.
Directors and managers of not-for-profit corporations and membership organizations often misunderstand the nature of their legal obligations under New York Not-For-Profit Corporation law. Corporate formalities are just as important in the direction and management of not-for-profit entities as they are for business corporations, and the failure to observe the principles of sound corporate governance can jeopardize the effectiveness, viability and existence of a not-for-profit organization.
Essentially, the directors of a nonprofit need to avoid becoming over-involved with the daily operations of the organization they serve, but at the same time, they must remain informed and engaged with the organization through the procedures provided in the articles and bylaws for that purpose. Regular meetings, special meetings, functioning board committees, and regular reports from the executives to the board are the usual ways directors discharge their duties to the organization in a manner that satisfies state law.
Avoiding Conflicts and Liability Through Sound Legal Advice
Jacobowitz & Gubits attorneys help nonprofit clients avoid many of the problems that such organizations encounter through misunderstanding of roles and noncompliance with legal requirements:
- Board members acting as individuals rather than through the board
- Board members becoming involved with daily operations at the management or staff levels
- Errors in fundraising campaigns, including games of chance
- Identification, disclosure and resolution of conflicts of interest
- Issues related to the duties of care and loyalty that are binding on nonprofit officers and directors
Like any other corporation, not-for-profit organizations are usually quick to recognize that it is much less expensive to avoid legal difficulties than it is to resolve them. Our advice can keep your organization focused on its mission rather than crisis management.
Comprehensive Service for Nonprofits: Call 866-535-4743 or 845-764-4285
Our lawyers can also help nonprofits deal with the problems that are characteristic of tough economic conditions, and can advise you about the legal and practical implications of such money-saving alternatives as merging with similar organizations, outsourcing or sharing staff functions, and launching effective capital campaigns.
For additional information about our firm's ability to deliver sound advice and representation to not-for-profit corporations throughout New York's Hudson Valley, contact a lawyer at Jacobowitz & Gubits, LLP, in Walden or Monticello.
