Nonprofit Organizations: How To Avoid Common Errors & Strategies To Minimize Risk

September 25, 2019 at 8:00am11:45am
Fox Rothschild LLP
Fox Rothschild LLP

747 Constitution Drive, Suite 100
Exton, PA 19341-0673

Join Fox Partner Rich Caputo for an encore presentation of his comprehensive breakfast program on common errors made by nonprofit organizations and how your organization can minimize risk. This program will offer three sessions and attendees will leave with the knowledge to better position their organization for continued success.

Session 1: The 20 Most Common Errors Made by Nonprofits in 2018
Is your organization contemplating a merger? Did it consider a member substitution instead? Is your organization maximizing distributions from endowments, other investable assets and trusts through Act 141 elections and appropriations? Is your organization seeking to unrestrict certain restricted funds? Is your spending policy consistent with its “appropriation” policy? Has your organization created affiliates and obtained proper insurance coverage in order to protect its endowment funds and investable assets from liability exposure arising out of your operations, real estate activities and related and unrelated businesses? Has your organization adopted a Signatory and Disbursement Policy? Does your board approve fundamental transactions by a super-majority vote? Regardless of the size of your organization, it is imperative to avoid common pitfalls to position your organization for continued success. Attendees of this session will be able to identify the 20 most common errors nonprofits made in 2018 and learn how to avoid these errors.

Rich will also discuss how nonprofits frequently fail to minimize risk arising out of operations, real estate and related and unrelated business activities. He will discuss risk generally, factors to consider when purchasing insurance coverage, creditor remedies when claims exceed coverage, restricted and unrestricted corporate assets, the ability of a creditor to pierce the corporate veil, and methods to minimize liability exposure. He will then discuss how most nonprofits fail to minimize risk when merging or affiliating with another organization.

Session 2: Minimizing Risk Through Insurance and Organizational Structure
Rich will discuss, in detail, the two most common ways to minimize liability exposure, namely, purchasing insurance and modifying an organization’s organizational structure by creating affiliates. He will also discuss common errors made when reorganizing operations and ways to minimize liability exposure from such reorganizations.

Session 3: Minimizing Risk Through Alternative Affiliation/Acquisition Structures
Rich will discuss risk arising out of mergers and alternative affiliation/acquisition structures to minimize such risk. He will also discuss common errors made when affiliating with, or acquiring, third parties and ways to minimize liability exposure from such affiliations/acquisitions.

Agenda:
8 am              Registration and Breakfast
8:30 am         Presentations
11:45 am       Q&A and Dismissal