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Nonprofit Lawyer Questions

12 Essential Questions to Ask Your Nonprofit Lawyer

October 10, 2023

In the realm of nonprofit law, there is a complex interplay of various disciplines, including taxation, governance, and intellectual property, each with its own unique subtleties and intricacies. Thus, when selecting legal representation for your nonprofit organization, it is paramount to ensure that your counsel is well-versed in these intersecting facets of law. The following series of queries is designed to guide you in this critical selection process.

First, probe into the attorney’s comprehension of tax-exempt status. Solicit information on their knowledge and experience navigating the labyrinthine tax regulations facing nonprofit organizations. Ask pointedly about their familiarity with Internal Revenue Code Section 501(c)(3), the legal cornerstone for tax-exempt charitable organizations, and the subtleties of maintaining that status. Their response will offer a clear indicator of their capacity to provide strategic tax advice.

Secondly, query about their familiarity with the unique governance structures of nonprofits. Not for profit organizations don't operate under the same principles as their profit-generating counterparts. Their operational model, as stipulated by Sarbanes-Oxley Act, for instance, places a stronger emphasis on transparency and ethical conduct. Ask if they are adept at drafting articles of incorporation, bylaws, conflict of interest policies, and other governance documents that reflect the unique features of nonprofit organizations.

Thirdly, intellectual property law is another crucial area to explore. Nonprofits often possess valuable intellectual property, such as trademarks, copyrights, and patents. Therefore, it's important to inquire about their experience in protecting these assets, along with their knowledge of fair use principles and licensing agreements.

The fourth area to delve into is the lawyer's experience with regulatory compliance. Nonprofits are subject to regulations on fundraising, lobbying, and political activities, among other areas. It’s critical to ask them about their experience guiding nonprofits through these regulations, which might range from monitoring state solicitation laws to ensuring compliance with the Federal Election Commission’s rules on political activities.

Next, ask about their experience with nonprofit mergers and alliances. Nonprofits, like their for-profit counterparts, might find strategic reasons to merge or form alliances. Such endeavors, however, are fraught with legal and logistical complexities. Thus, inquire about their experience in these areas which might include conducting due diligence, drafting merger or alliance agreements, and facilitating the integration process.

Sixth, it's worth asking about their connections in the nonprofit sector. Nonprofit law is a niche area with its own professional associations, publications, and events. An attorney who is plugged into these networks can offer not just legal advice, but also insights into the best practices and current trends in the field.

In your seventh query, delve into their experience with litigation. While the goal is to avoid legal disputes, in the event of a lawsuit, it’s critical to have an attorney who’s experienced in representing nonprofits in court.

The eighth question concerns their understanding of the fiduciary duties of board directors. Nonprofit board members have unique responsibilities and liability exposures that differ from those in for-profit entities. It’s important that your attorney can advise board members on these duties and provide strategies for risk management.

In your penultimate series of queries, ask about their fees. Legal services can be a significant expense for nonprofits. Thus, it’s imperative to know up front about the attorney’s fee structure and whether they offer any discounts or pro bono services for nonprofits.

On a similar vein, your tenth inquiry should be about their willingness to train your staff. Nonprofits often operate with limited resources, meaning staff may have to wear many hats, including some with legal dimensions. An attorney who is willing to provide some training can empower your team and potentially save the organization money in the long run.

Eleventh, inquire about their capacity to represent you in the international arena if applicable. With the advent of digital technology easing global communication and collaboration, your organization might find itself needing legal advice on international regulations and cross-border transactions.

Finally, it’s crucial to ask about their commitment to your cause. Nonprofit work is driven by mission and passion. An attorney who shares your enthusiasm will likely go the extra mile to help your organization thrive.

In conclusion, the process of choosing a nonprofit lawyer is a complex task that requires a careful analysis of numerous factors. This set of questions provides a comprehensive guide to evaluate potential legal representation. Remember, the ultimate goal is to find a lawyer who understands not just the legal landscape but also the unique nuances of nonprofit work.

Related Questions

The Internal Revenue Code Section 501(c)(3) is the legal cornerstone for tax-exempt charitable organizations in the United States.

The Sarbanes-Oxley Act is a law that places a stronger emphasis on transparency and ethical conduct in organizations, including nonprofits.

Examples of intellectual property include trademarks, copyrights, and patents.

Nonprofits are subject to regulations on fundraising, lobbying, and political activities, among other areas.

Nonprofit mergers and alliances involve legal and logistical complexities such as conducting due diligence, drafting merger or alliance agreements, and facilitating the integration process.

Fiduciary duties of board directors in nonprofits include acting in the best interest of the organization, exercising due diligence and care, and avoiding conflicts of interest.

An attorney committed to a nonprofit's cause shares the organization's mission and passion, and is likely to go the extra mile to help the organization thrive.
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