Intermediate Sanctions Act

Beyond the Bylaws: A Clarification of Nonprofit Board Responsibilities

Beyond the Bylaws: A Clarification of Nonprofit Board Responsibilities

By: Eugene Fram

A nonprofit director’s duties may be much more difficult than those of a for-profit board member. Both types of directors have the same basic duties: fiduciary responsibilities; establishing, with staff input, mission vision and values; setting policies/strategies; over-viewing outcomes/impacts and conducting annual meetings. (more…)

Can Nonprofit Boards Learn From The Mistakes of Others?

Can Nonprofit Boards Learn From The Mistakes of Others?

By: Eugene Fram

An old Chinese proverb states: “A wise man learns from his own mistakes, the wiser man learns from the mistakes of others.” Since nonprofit boards of directors are continually changing, volunteer directors typically serving three to six year terms, it seems that board members should immediately want to learn from the experiences of others. (more…)

Nonprofit Alert: Follow the Government’s Regs!

Nonprofit Alert: Follow the Government’s Regs!

By Eugene Fram

Stakeholders of every nonprofit want their board members and managers to be passionate about the organization’s mission. However, in the current century, directors and managers must navigate a regulatory environment that can lead to substantial personal liabilities and possibly impair their own reputations and that of the organization.

For example, I recently read about a director of a nonprofit who was fined $10,000 by the IRS for failure to vote “no” on a proposed $2 million building contract between the organization and his building firm. The logic behind the fine appears to be a violation of the Intermediate Sanctions Act, Section 4958 of the IRS Code. (more…)

Nonprofit Board Members & Managers – Are you aware of the Federal Intermediate Sanctions Act?

Nonprofit Board Members  & Managers – Are you aware of the Federal Intermediate Sanctions Act?

 

I have been surprised by the number of people, holding nonprofit board and management positions, who are totally unaware of this piece of legislation. (IRS Code – Section 4958)

The act applies to nonprofit organizations.  As I understand it, the act states (more…)