How to Keep Your Not For Profit Thriving
To keep your not for profit thriving you must place principles before personalities, craft organization charts and job descriptions carefully, separate personal interests and charitable purposes as well as follow corporate formalities. Not for profits accomplish different goals than for profit organizations, but they are still exposed to many of the same risks. Thereby, without following the proper procedures not for profits fail. Does your not for profit need assistance from a Miami business litigation attorney? Please contact the Campbell Law Group now.
Place Principles Over Personalities
Not for profits hold themselves true to an ideal, or at least they should to keep functioning. The personality developed by the not for profit must never trump the principles upon which it was founded. Members of not for profits that feel their founding members have carte blanche are not productive. Communication must be honest and direct and foster a relationship, something which can be maintained in a variety of ways including the establishment of board retreats.
Craft Organization Charts & Job Descriptions Carefully
Paid personnel and volunteers make up not for profits. Wage and payroll records must be maintained for paid personnel; wrongful termination and wage claims may still be levied against not for profits. Employment contacts which specifically identify terms of employment, expectations and goals are key. Of lesser importance are key volunteer personnel job descriptions which prevent territorial fights and hurt feelings.
Separate Personal Interests & Charitable Purposes
Personal interests are often at the heart of why not for profits are founded in the first place. Families that experience the disability of one of their members are understandably inspired to fight the challenge in a larger way than they have already fought privately. Board members also often come from the family or founding members themselves, and they receive the same services offered by the organization. However it is important to make sure that board members can not benefit personally from donations made to a charity; separating these interests is essential to the survival of a not for profit.
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Follow Corporate Formalities
Not for profit organizations allow its members to fulfill philanthropic activities while at the same time offering tax incentives to their donors for helping charitable activities. In order to provide these unique privileges not for profits must submit financial information in a timely manner and remain in good corporate standing. This also means maintaining detailed minutes and resolutions of board activities. However, these requirements are tedious to those who actually run the day-to-day operations of not for profits. This is why it’s important to make sure, in order to keep the not for profit afloat, that these onerous tasks are followed correctly.
Hire Miami Business Litigation Attorneys
Not for profits survive by using donations and grants. This is why all bookkeeping, accounting and legal aspects must be handled with complete transparency and accuracy. Professional help can be expensive and as a result prevent new not for profits from seeking it out. However, this is a small cost compared to the problems faced by a charity which does not adhere to the above. Furthermore, no funding in the form of donations and grants will be made available by serious donors because they will want to make sure an organization is legitimate. For help with the legal aspect of not for profits contact the Campbell Law Group now.