Guest Post by Mark C Rogers Esq., Attorney for The Rogers Law Firm and a sponsor of the Network Fun Night Out For Non-Profits. See an interview with Mark here.

Massachusetts AG Sues Figure Skating Club

Mark C Rogers Esq, The Rogers Law Firm

 The Massachusetts Attorney General’s Office (“AGO”) recently filed suit against the former treasurer of a figure skating club for misappropriating the public charity’s funds for his own personal use. What is most notable about the suit, however, is the disclosure of the AGO’s Assurance of Compliance with the skating club requiring the implementation of certain best practices for public charities. Massachusetts public charities can utilize the Assurance of Compliance as a checklist in analyzing their own operations.

The Complaint in Attorney General v. Eavzan, alleges that Barry Eavzan, the former treasurer of New England Figure Skating Club, Inc. (“NEFSC”), misappropriated approximately $120,000 of the club’s funds and assets for uses unrelated to legitimate costs incurred for skating instruction, rental of ice time and travel expenses related to skating competitions. It is alleged that Eavzan used club funds for personal expenses including airline tickets, limo rides, and the purchase of shoes, flowers, and rugs. Eavzan was NEFSC’s volunteer treasurer between 1996 and 2007.

As part of the filings in Attorney General v. Eavzan, it has been disclosed that in May of 2008, the AGO entered into a separate settlement agreement with NEFSC relating to its financial practices. In the settlement, NEFSC acknowledged that its record-keeping practices were inadequate and that it had failed to maintain accurate documentation of income and expenses. The settlement also required NEFSC to enter into an Assurance of Compliance with the AGO providing for the adoption and implementation of new financial policies and procedures. The Assurance of Compliance provides insight into what the AGO views as best practices for financial policies and procedures for public charities in Massachusetts. Although many of the provisions of the Assurance of Compliance are specific to NEFSC, there are several which have general applicability to all public charities, including:

• Ensure accurate and complete minutes of each board or board committee meeting are taken and kept at the public charity’s main office;
• Institute conflict of interest, private inurement, excess benefit transaction, whistleblower protection and expense reimbursement policies;
• Require regular inventories of the public charity’s property;
• Institute an annual budget that is regularly reviewed at board meetings;
• Make publicly available the organization’s Form PC, Form 990, vision and mission statements, and articles of organization; and 
• Permit all board members to have access to the public charity’s financial books and records.

The above provisions can serve as an effective checklist for Massachusetts public charities in analyzing their own operations.

If you are interested in The Rogers Law Firm’s Non-Profit Corporate Governance Audit Program, please contact Mark Rogers at mrogers@therogerslawfirm.com or 781-794-1600.

Join us May 6, 2010 for a fun evening of networking at the South Shore Science Center.

There will be education, cocktails, prizes and a chance for your Nonprofit organization to walk away with a cash donation! For more information click on the link below.

South Shore MA - Networking for Non-Profits

The By Laws Can't Say That

Regulations for Non-Profit Organizations Keep Changing

In addition to the new WISP regulations that are going into effect March 1, 2010, there have been significant regulatory changes that affect nonprofit organizations.  Non-profit organizations are under increasing scrutiny from state and federal regulators and the public in general. The failure to have an appropriate governance structure in place can subject a non-profit organization, and its officers, directors, and senior managers to substantial liability exposure and negative media attention.  It was even mentioned in the news recently that MA Attorney General Martha Coakley told Garden Clubs they need to comply with regulations.

Some of the biggest changes involve the WISP and conflict of interest policies for board members, however there are several areas that organizations need to keep up with current law, including:

• Board Structure
• Board Operations
• Corporate Compliance
• Risk Management
• Financial Oversight
• Board Composition
• Board Recruitment

We encourage all non-profit organizations to attend one of our mini-conferences to learn about regulatory compliance.  If you can’t make it to one of them you could contact Mark Rodgers, one of our speakers, at The Rodgers Law Firm.  They offer for a flat fee a Non-Profit Corporate Governance Audit Program that addresses compliance issues.

Want to learn more about regulations for Non-Profit Organizations? Join us at our next non-profit mini-conference.

Photo credit: http://www.flickr.com/photos/gak/172713466/

Guest Post by Mark C Rogers Esq., Attorney for The Rogers Law Firm and sponsors of the October 22 Non-Profit Toolbox Mini-Conference.  See an interview with Mark here.

Mark C Rogers Esq, The Rogers Law Firm

All too often in the world of non-profit organizations, an individual becomes a member of a board of directors (or trustees) and attends their first board meeting with little or no substantive background regarding the organization, its mission, their own role and responsibility, and no understanding of their potential liability exposure from serving as a board member.  The failure of non-profit organizations to appropriately orient new board members can lead to a poorly informed and even dysfunctional board, which can in turn have disastrous consequences for the organization.

A non-profit organization should ensure that every individual who becomes a member of its board receives an appropriate orientation by the organization prior to attending their first board meeting.  The orientation should be a joint effort by both the board and the organization’s management (including counsel) and should, at a minimum, include an overview of the following: the purpose of the organization; its by-laws; the roles and responsibilities of the management team and the board; and a description of the functioning of the various committees of the board.

Ideally, this orientation should include a legal component with particular emphasis on the board’s fiduciary duties to the organization.  It is almost inevitable that at some point during an individual’s term as a member of the board, a question will arise regarding their potential liability exposure as a result of their actions or inactions as a member of the board.  By having a legal component to the orientation, the organization can, at least in general terms, address this concern.  The legal component should include an overview of the statutory protections afforded to board members of non-profit organizations who serve without compensation and should also address the subject of director and officer liability (D & O) insurance.

The orientation should be held separate and apart from the organization’s usual board meetings and all existing board members should be encouraged to attend.

The current economic downturn presents significant challenges to non-profit organizations.  A well-planned orientation can be of material benefit in preparing the board to face these challenges.

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Written by: Tom Beach, Executive Director & Vice President of The Toolbox, Inc. and Video Director at the October 22 Non-profit Toolbox event.

Lisa Morressey interviews Mark Rogers from The Rogers Law firm. This is a 9 attorney firm on the South Shore of Massachusetts. They have over 140 years of combined experience working with non-profit organizations, and they have represented some of the largest non-profit organizations in the state, as well as many small start-ups.

Read highlights from the interview below.

The Rogers law firm is unique in two areas:

1. They are a General Practice Firm – They cover all aspects of the law.
2. They work with fixed fees – you know your costs before you start.

They have over 140 years of combined experience working with non-profit organizations, and they have represented some of the largest non-profit organizations in the state, as well as many small start-ups.

The top three challenges facing non-profits are:

1. Corporate Governance issues
2. Contracts with vendors
3. Conflict of interest policies

Mark Rogers will have a table at the Non-Profit Toolbox October 22 event. Stop by and talk with Mark about your organization’s legal concerns.

OCTOBER 22 SEMINAR

Thursday 10.22.09 /8:00AM-12:30PM

The Non-Profit Toolbox’ Seminar
has all of the tools you need!

Holiday Inn / 929 Hingham St / Rockland, MA 02370

$129 Registration [Early Bird $99] → LEARN MORE