No Good Deed Goes Unpunished

Kent is also one of the most sought after speakers on a variety of subjects from social entrepreneurism to mergers and acquisitions in the nonprofit sector. He can be reached at  kseton@sblservices.com.

Establishing charities and non-profits and serving on their boards is a wonderful way to contribute to society. It's the type of work that makes our world a better place, that helps our communities and fellow men and women cultivate better lives.

But, is it all happy times and roses? Not at all, not by a long shot.

As lawyers who work with a wide range of non-profit organizations and charities, we have seen the gamut of issues that can arise in this industry. While we are not litigators and do not defend our clients in legal proceedings, we provide the legal guidance that helps an organization avoid claims being made against it and its volunteer board of directors.

Beside a complex regulatory environment, many potential legal claims can be made against non-profits and charities depending upon their programs, activities, and fundraising activities. If you do not consider how to protect yourself and minimize your exposure, you might fall prey to a crippling claim, regardless of the selfless and beneficial nature of your mission. Moreover, beyond the financial loss of a claim, non-profits can suffer tremendous emotional losses and far-reaching negative media relations.

"I Did What?"-A Primer on Claim Types

The most common question I receive is what types of claims apply to a non-profit organization, charity, and its board. The answer is, "It depends" (perhaps the most common, albeit fair, response in the legal world). That being said, here is a list of claims that may apply to your organization:             

• Breach of Fiduciary Duty
1. This generally arises out of the responsibility of board members and the fact that they are, in essence, "trustees" of the corporation's assets. Thus, if funds or assets have been mismanaged, then there is a breach of fiduciary duty.
• Breach of Trust
1. This is the same type of claim as above. Keep in mind that both claims give rise to the potential for punitive damages.
• Misrepresentation
1. Let's say the board allows the issuance of a financial report, which fails to include materials facts or even omits something. This constitutes fraud, an actionable offense against both the board and board of directors
• Mismanagement of Funds
1. This is a violation of statutory law, both federal and state, and also of common law. Restitution is a potential remedy, as is potentially criminal liability if the offense was intentional.
• Negligent Hiring
1. Let's say an organization hires a CEO through its board of directors, and then the CEO embezzles money. Let's also say that the board, had they performed a routine background check, could have discovered fraud in this CEO's background. A legal claim can be made against the corporation and its directors for Negligent Hiring.
• Negligent Supervision of Employees
1. Let's assume a board hires a volunteer in a child daycare program and nobody supervises this person (but should have). This is Negligent Supervision and is actionable.
• Professional Negligence
1. This can apply to many charities providing services, caring for the elderly, providing mental health consultations, medical care, legal services, and more. If the organization fails to provide adequate services, then there could be liability for the resulting damages.
• Wrongful Termination
1. This occurs when an employee is terminated and hires a lawyer to sue for wrongful termination. This is a very debilitating claim.
• Personal Injury Claim
1. Let's say you have an amazing event to raise money. You serve alcohol to the guests, but you also serve a minor who gets into a car accident. The claims here can be substantial.

"Help!"-Ideas for Protection

You might be saying to yourself, "Ok, I get it. But now how do I protect myself?" (READ MORE)

Retreats Without Coaching Are Not Worthy of Doing 

Janet McIntyre, MA, CPCC, is a certified non-profit coach and consultant.  Learn more about her coaching practice at http://www.janetmcintyreconsulting.com  Email Janet at janetnami@gmail.com

    Don't you love that reinvigorated feeling that you get after a successful retreat?  The energy of your staff and board are high, the ideas are flowing, a brighter, better fture for your organization is within your grasp...and the sky is the limit!

     Fast forward to a month after the retreat.  What's the energy like now?  Where did that million-dollar idea go  The hope for a better tomorrow...how realistic does that feel now?

     If you're like me and have experienced the loss of momentum that often occurs after a retreat, then you've also grown to have a love/hate relationship with retreats.  You love them for their potential.  You hate them for the potential that gets lost.  

     And that's precisely why I insist to only facilitate retreats for organizations that commit to post-retreat coaching.

What Is the Role of Coaching in Retreats?

     To ensure that your best intentions from the retreat don't fall flat, schedule some coaching sessions after the retreat to put your ideas into immediate action.

     During retreats we often decide "what" we want to do in terms of our programs and services, or "where" we want our  organization to go.  Often these exciting goals and objectives get stalled after a retreat because the "how," "who," "when," haven't yet been figured out.  And even when those things HAVE been decided upon during the retreat, plans fall flat afterwards for a variety of reasons.

     A coach can help bright the gap between the vision and the action. (READ MORE)