News & Analysis as of

Nonprofits Fiduciary Duty

Pillsbury Winthrop Shaw Pittman LLP

Developments in Association Law 2022 – 2024

The following is a review of notable cases and regulatory developments for nonprofit organizations at the federal and state levels during the last two years....more

Allen Matkins

Can A Member Bring A Derivative Action On Behalf Of A California Nonprofit Corporation?

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Like many questions in the law, the answer to the question of whether a member of a California nonprofit corporation may maintain a derivative action is "it depends"....more

BakerHostetler

AD-ttorneys@law - January 2024

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Extra, Extra, Read All About It! We have a major update! If you’re a subscriber to our blog, you have likely caught wind of our recent rebrand to ADventures in Law. Overflowing with a dynamic mix of weekly blogs, engaging...more

Allen Matkins

Are The Harvard Corporation Members Answerable Only To G-D?

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On December 12, 2023, the Harvard Corporation  unanimously reaffirmed its support for President Claudine Gay's continued leadership despite her controversial testimony before the U.S. Congress and allegations of plagiarism. ...more

Allen Matkins

If Harvard Is A Corporation, Does Its Board Owe Fiduciary Duties?

Allen Matkins on

Of late, Harvard has garnered an abundance of attention regarding the continued incumbency of its President.  Despite widely criticized testimony before Congress and the publication of allegations of plagiarism, the Harvard...more

Cozen O'Connor

AG Ellison Seeks to Dissolve Nonprofits that Profited at Expense of Needy Children

Cozen O'Connor on

Minnesota AG Keith Ellison filed 23 lawsuits seeking to shut down nonprofit corporations that allegedly defrauded the Federal Child Nutrition Program by falsely claiming to serve meals to children in need while pocketing the...more

Pillsbury Winthrop Shaw Pittman LLP

Developments in Association Law 2021 – 2022

A review of notable cases and regulatory developments for nonprofit organizations at the federal and state levels in 2021 and 2022. Governance - Striltschuk v. Hryckowian, 202 A.D.3d 497, 160 N.Y.S.3d 56 (2022) - ...more

ArentFox Schiff

Swap Transactions: What Is an IRMA? When Are IRMAs Necessary?

ArentFox Schiff on

Many nonprofits are presented by lenders with an option to enter into an interest rate swap or cap when pursuing long-term financing or modifications to existing long-term financing. Mainly in response to abusive...more

Felicello Law PC

Low Risk, High Rewards: Legal Protections for Non-profit Boards

Felicello Law PC on

According to the National Council of Nonprofits, there more than 1.4 million 501(c)(3) charitable nonprofits in the United States alone. This nonprofit sector is a vital part of our national and local infrastructure,...more

Cozen O'Connor

AG Bonta Fines Nonprofit for Misdirected Donations

Cozen O'Connor on

California AG Rob Bonta reached a settlement with defunct San Francisco nonprofit ZeroDivide and its directors and officers (collectively, “ZeroDivide”) to resolve allegations that it misspent donations in violation of...more

Cozen O'Connor

AG Bonta Fines Nonprofit for Misdirected Donations

Cozen O'Connor on

California AG Rob Bonta reached a settlement with defunct San Francisco nonprofit ZeroDivide and its directors and officers (collectively, “ZeroDivide”) to resolve allegations that it misspent donations in violation of...more

Nilan Johnson Lewis PA

Recommendations for Nonprofits After the Minnesota Attorney General Settlement for Self-Dealing

Nilan Johnson Lewis PA on

A nonprofit recently settled with the Minnesota Attorney General due to conflicts of interest and allegations of self-dealing. While it may be easy to dismiss the settlement as an example of a sham nonprofit obviously...more

Allen Matkins

Is A Breach Of Fiduciary Duty A Violation Of State Law?

Allen Matkins on

California Labor Code Section 1102.5 protects employees from certain retaliatory acts by their employers.  Subdivision (b) of the statute provides...more

Tucker Arensberg, P.C.

Avoiding Conflicts of Interest on the Board of Directors

Tucker Arensberg, P.C. on

For profit and non profit corporations are governed to benefit a corporation and its shareholders or, from the non profit perspective, its charitable purpose/members. Conflicts of interest present significant ethical hurdles...more

Farrell Fritz, P.C.

Another Door Closes to Federal Court in Judicial Dissolution Cases

Farrell Fritz, P.C. on

Not for the first time, I find myself intrigued by the federal courts’ resistance to hearing state law claims for judicial dissolution of business entities where subject matter jurisdiction otherwise exists based on diversity...more

Hutchison PLLC

What’s the Difference Between a Public Benefit Corporation and a B Corp Certification?

Hutchison PLLC on

At risk of stating the blindingly obvious, all founders of for-profit companies want their businesses to be profitable. It’s the table stakes for starting and running a business. But what if you wanted to do more?...more

Winstead PC

Federal District Court Holds That A Former Director Of Nonprofit Did Not Have Standing To Sue For The Board’s Breach Of Fiduciary...

Winstead PC on

In Garcia v. Communities in Schools of Brazoria County, a director sued a nonprofit’s board for breach of fiduciary duty arising from his removal. 2019 U.S. Dist. LEXIS 97017 (S. D. Tex. June 10, 2019)....more

McDermott Will & Emery

Corporate Law & Governance Update - April 2019

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DIRECTORS AS VENDORS - A new controversy at a large health system highlights the legal and reputational challenges that can arise when directors sell services to the organizations they serve as fiduciaries. According to...more

Poyner Spruill LLP

Recent Decision Highlights Potential Personal Liability of Hospital Directors Based on Breach of Fiduciary Duty

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In a recent case, a federal bankruptcy court in Michigan reviewed important questions involving breach of fiduciary duty and the application of the business judgment rule to both management and volunteer board members of a...more

Poyner Spruill LLP

Corridors Fall 2018 - News for North Carolina Hospitals

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Recent Decision Highlights Potential Personal Liability of Hospital Directors Based on Breach of Fiduciary Duty - In a recent case, a federal bankruptcy court in Michigan reviewed important questions involving breach of...more

Pillsbury Winthrop Shaw Pittman LLP

Developments in Association Law, 2016 – 2017

There have been important legal developments at the federal and state levels for nonprofit organizations. - Takeaways - Nonprofits continue to experience Federal government and private litigant antitrust enforcement. ...more

McDermott Will & Emery

Corporate Law & Governance Update - June 2017

Board Termination of the "Unethical CEO" - An important new study concludes that CEO terminations for ethical lapses (as a percentage of overall CEO successions) has dramatically increased over the last five years. The...more

Womble Bond Dickinson

Liability for Directors of Nonprofit Corporations

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Lawyers are often asked to serve on Boards of nonprofit corporations and if they do so, they will often be asked by other directors about the potential individual liability of a director for actions of the nonprofit, for...more

McDermott Will & Emery

Corporate Law & Governance Update - February 2017

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THE #1 FIDUCIARY DUTY ISSUE OF 2017 - Positioning boards to exercise heightened engagement within the current “climate of uncertainty” is possibly the most important health system governance challenge of 2017. To...more

Proskauer - Not for Profit/Exempt...

Recaps from Proskauer’s 21st Annual Trick of Treat Tax Exempt Seminar

Proskauer’s 21st Annual Trick or Treat Seminar was held on Thursday, October 27. The Seminar discussed: Best Practices for Document Retention: One Size Does Not Fit All...more

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