In This Issue:

- Considerations in the Cloud: Managing the Risks

- United States V. Sperry: A Revived Threat to Owners, Directors, Managers and Directors of Distressed Organizations

- Board Membership & Ethics — Fulfilling Fiduciary Obligation to the Letter and Within the Spirit of the Law

- HPIO Releases “The Online Guide to Evidence-Based Prevention”

- Automatic Revocation — How to Have Your Tax-Exempt Status Retroactively Reinstated

- Managing Legal Liability Associated with Volunteers

- Optional Expedited Process for Section 501(c)(4) Applications (120 Days Old as of May 28, 2013)

- Excerpt from Considerations in the Cloud: Managing the Risks:

Scenario: Your organization was served with a subpoena request for all board meeting agendas, minutes and financial reports for a certain time period. The subpoena also requested any communications among directors and officers relating to a certain time period of board activity. Responding to the request costs the organization more than expected to retrieve, review and produce the data, because your organization does not maintain its own email server, allows officers and staff to use “personal” email accounts (e.g., gmail or Yahoo mail) to conduct business, and emails board documents to board members using their respective personal or business (sometimes both) accounts. Now, your organization is evaluating options for centralized email and data management, including “cloud” options. What should you consider?

Please see full Report below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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