WARNING:
JavaScript is turned OFF. None of the links on this concept map will
work until it is reactivated.
If you need help turning JavaScript On, click here.
This Concept Map, created with IHMC CmapTools, has information related to: Minor - Common Lawsuits, Five most COMMON LAWSUITS for NONPROFIT organizations reasons 3. Failure to Apply Bylaws Equally, Five most COMMON LAWSUITS for NONPROFIT organizations reasons 1. Improper Budget Management, 5. Usurping Corporate Opportunities in Self-interest How to Avoid *Board Members must offer business opportunities to the non-profit which might be of interest to the non-profit and give the non-profit the chance to accept or reject the opportunity before pursuing it him/herself., Five most COMMON LAWSUITS for NONPROFIT organizations reasons 4. Failure to Follow the Bylaws, 1. Improper Budget Management How to Avoid Directors should: * Maintain accurate and consistent records * Develop a workable budget, keeping in mind the needs, requirement, and exprectations of the organization Cautionary Tale - Most common cause of action against a NP by the IRS is failure to properly submit payroll taxes, 3. Failure to Apply Bylaws Equally How to Avoid * Board Members must treat similar clients, stakeholders, and situations similarly, applying bylaws with consistancy and predicability in all facets of the organization., Five most COMMON LAWSUITS for NONPROFIT organizations reasons 5. Usurping Corporate Opportunities in Self-interest, 2. Lapse of Corporate Status How to Avoid Nonprofit Organizations should: *Delegate responsibility of maintaining corporate status to legal professional, auditory, or specific director. *Provide adequate insurance coverage, as required by the bylaws and local governmental agencies, Five most COMMON LAWSUITS for NONPROFIT organizations reasons 2. Lapse of Corporate Status, 4. Failure to Follow the Bylaws How to Avoid *Be sure Board Members read and fully understand the organization's bylaws. *Board Members must appreciate their importance and binding affect.