Module
2 segues to the formation of nonprofits. It focuses on the choice of a business
form that parallels the choice faced by for-profits. We’ll then discuss the
steps of formation and the requirements under state law, again contrasting
those of for-profits. The module also covers the important steps that
nonprofits must take to secure and maintain tax-exempt status, a key goal of
many nonprofits.
Module
3 surveys state and federal laws that regulate nonprofits, including the models
acts relevant to these organizations. We’ll focus on nondiscrimination and
harassment rules and on corporate regulations that apply to nonprofits.
Finally, the module looks at education, election and lobbying rules that are
particularly relevant to nonprofits.
Module 4 transitions to governance
rules. We’ll look at liability of the organization and of the directors and
officers. We’ll also focus on the fiduciary duties owed by the stakeholders to
the organization’s members and to the public. We’ll also cover the “best
judgment rule,” which protects decision makers, much like the “business
judgment rule” does for for-profit managers.
The
last module then looks at the rights and powers of the managers of the
nonprofit. It focuses on their powers to make changes, dissolve the
organization, inspect its records and the limitations on all of these. We’ll
also focus on the right of indemnification, by which directors can be
reimbursed for expenses incurred on behalf of the organization.
When
you complete this course, you should understand the structure and management of
nonprofits and the most important distinctions between non-profit and
for-profit organizations.
Best
of luck and we welcome your feedback.
BUS-202: Nonprofit Organizations Law