Changing Times and Contract Hot Spots

No doubt, our recent times have been epochal – significantly affecting individuals, nonprofits, and much more. We’ve seen a pandemic, racial tension, mass shootings, protests, war, incredible social media influence, and increasing division on social issues. We all have been deeply impacted and forced to change in countless ways. As the non-profit sector seeks to continue improving and impacting communities through educational, health, social, religious-based, and other services and activities, nonprofits should newly assess the ways they address agreements with other parties.

Multicorporate Structuring Basics for Nonprofit Leaders

Innovative nonprofit leaders frequently leverage so-called “multicorporate structures” to achieve multiple beneficial objectives. May nonprofit corporations do so, such as through forming subsidiaries? If so, when, and why? What are the liability and tax implications? This article describes legal aspects of nonprofit multicorporate structuring generally, then answers each of these questions in turn.

Life Cycle of a Nonprofit Corporation

“From our birthday, until we die, / Is but the winking of an eye." - William Butler Yeats

How exciting to start a nonprofit, to dream about all the good to accomplish in the world! The starting passion, joy, and energy drives nonprofit founders to put in the time, effort, sacrifices, and money to create a new organization that will grow, change, and mature, in many ways like a human life will develop or a seed will take root and grow.

What are the legal aspects of a nonprofit corporation’s life cycle? It starts with “birth” or formation, then the first steps of corporate development, and onward into operational governance. Later nonprofit life comes with potential transitions like mergers and multi-entity structuring (i.e., corporate “marriage” and “children” or subsidiaries), and then possibly dissolution (i.e., “death,” at least in the legal sense). Many legal compliance and best practices considerations come into play for each stage.