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.
Thanks to a new federal rule, employers may more flexibly either (a) provide pre-tax reimbursements for their employees’ individual health insurance premiums and other expenses, or (b) pay such expenses directly on employees’ behalf. Effective January 1, 2020, such pre-tax availability has been reinstated, following the Affordable Care Act (ACA)’s elimination and only a limited version under the 2016 21st Century Cures Act, but with some new twists. As a result, employers and their employees now enjoy more pre-tax options for health benefits, albeit with increasing complexity and varied conditions.