Best Practices Amidst Coronavirus Concerns

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.

Who is the Client? Legal Representation in Nonprofit Disputes

When a conflict develops involving a nonprofit, its leaders, or its programs, one of the first calls is usually to the nonprofit’s lawyer.  But when the time comes to call the nonprofit’s attorney, two important questions arise: (1) Who should properly make that call, and (2) On whose behalf is the call being made?  These two questions highlight a more foundational and general question:  Who or what is the attorney’s client in a conflict involving third parties or internal disputes?