llinois Governor J.B. Pritzker recently issued a state-wide mandate to minimize the spread of the novel coronavirus (COVID-19). This short article addresses the mandate’s immediate ramifications for religious organizations, social service providers, and employers.
Nonprofit directors and officers owe the nonprofits they serve a fiduciary duty of due diligence. In the context of COVID-19, this means board members should be as mindful of COVID-19-related matters as they would be for any safety-related issue. The ordinary legal standard for whether board members have satisfied their legal duty is generally known as “business judgment rule:” What would an objectively reasonable person do in a similar situation? As nonprofits grapple with still-emerging challenges, here are key practices and initial recommendations based on the current situation, all of which are important for fulfilling due diligence responsibilities.
Your nonprofit has just identified a capable and promising executive candidate, perhaps for executive director, chief financial officer, or another high-level position within the organization. And the candidate has accepted! What should be negotiated and worked out for that person’s employment? How can the board promote a positive working relationship with clarity and optimal opportunity for success? The following key areas warrant attentiveness at the beginning of this critical engagement, to promote a healthy, effective, and legally compliant employment relationship.