Non-Profit Organization Governance-Corporate Responsibilies

Duration:30 mins

Description

Non-Profit Organization Governance-Corporate Responsibilities 303 This lecture series covers the creation, operation and management of both standing and ad hoc committees as well as various auxiliary relationships and joint venture efforts. Concluding with a review of various sales tax and fundraising issues. The directors of a nonprofit corporation will frequently discharge their duties through committees composed , wholly or in part, by members of the board. The directors should understand what functions can be delegated to committees, what responsibilities the board has concerning committee activities and the degree to which directors can rely upon information provided by committees. The directors should also understand the difference between committees of directors and certain kinds of advisory or auxiliary boards or other bodies composed of non-directors. The board of a nonprofit corporation may decide that the corporation’s mission and goals would be served by engaging in an activity that does not easily fit within the corporation’s current structure. If such activity is one that is typically engaged in by nonprofit organizations, the board may establish a nonprofit subsidiary or affiliate. However, if the activity is one that will generate taxable income, or is typically conducted by for-profit rather than nonprofit organizations, the board may consider establishing a for-profit subsidiary, or entering into joint-venture arrangement with a for-profit entity. A director should understand the basic application of federal and local tax law to the corporation. This lecture outlines the principal federal income tax issues of the more common nonprofit corporation.