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Accountability
Lawyers Alliance helps nonprofits to achieve high levels
of productivity and effectiveness and to demonstrate accountability
to government regulators, philanthropic supporters, clients,
and the public. Our Nonprofit Accountability Initiative cuts
across our five program priorities and applies to our full
range of nonprofit clients.
Our legal representation services, educational programs,
and Resource Call Hotline address three core legal areas of
accountability: Sound Board Governance,
Transparency in Financial Reporting,
and Proper Personnel Management.
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| Inwood House
sought our help with updating its organizational documents
to reflect current activities, as part of a technical
assistance project for grantees of the Clark Foundation
and Tiger Foundation. Working with the client's staff
and board, our attorneys prepared amendments to the
certificate of incorporation and by-laws and reviewed
a personnel manual. This legal matter equipped Inwood
House with upgraded governance documents,
making it better positioned to continue its innovative
programs in teen pregnancy prevention and family support,
including programs in Northern Manhattan, Queens and
the South Bronx.
"I have been impressed by how much Lawyers Alliance
helps nonprofits with accountability, not only by creating
legally compliant documents but also by making it easier
for nonprofit managers to understand what the documents
mean and why they matter." |
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Gladys Carrión,
Senior VP
for Community Investment,
United
Way of NYC, and
former Executive Director
of Inwood House
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Sound Board Governance - Nonprofit governance and organizational structures should provide checks and balances that maintain the necessary levels of stewardship and accountability by directors and officers. To help nonprofits meet these standards, our services include review and preparation of certificates of incorporation, by-laws, conflicts of interest policies, and other organizational documents.
| The board of directors
of a social service provider decided to update the agency's
by-laws and strengthen its governance practices after
receiving a negative rating from the Better Business
Bureau. Our attorneys advised the board on fulfilling
its fiduciary obligations and amended the agency's by-laws
to update the committee structures. |
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Transparency
in Financial Reporting - Nonprofits publicly demonstrate
their accountability through publicly available financial
reports. Our services help them to understand their legal
obligations and to present financial information accurately
to both regulators and the public.
| In its first 10 years
of operation, a housing organization had annual revenues
under $10,000. In its 11th year, it received a three-year
$75,000 grant. Unaware that it was now required to file
a Form 990, the board of directors failed to do so.
When the IRS assessed them with several thousand dollars
in penalties, our attorneys successfully negotiated
a waiver of these fines. |
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Proper Personnel
Management - Sound personnel practices are important
if nonprofits are to manage their employees fairly and comply
with local, state and federal laws. Our services include preparing
personnel policies and volunteer manuals, advice on employee
classification and wage and hour laws, and counsel on other
employment law matters. We help nonprofits to understand their
legal obligations as employers and to manage their human resources
with reduced risk of liability.
| An after-school program
incorrectly classified all of its instructors as independent
contractors. Improperly classifying an employee as an
independent contractor can expose a nonprofit and its
directors to liability for failure to pay withholding
taxes. Our attorneys examined the organization's relationships
with each instructor and determined which instructors
should be re-classified as staff. |
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