What Are the Biggest Legal Challenges Facing Nonprofit Organizations Today?

Video Transcript

The nonprofit organization realm, the part of the sector of the economy where they sit has been challenged for a long time when it comes to funding. And finding sources of revenue and finding funding we have to remember that the nonprofit sector isn’t just a hospital. I mean, there are churches, there are active organizations that are serving the homeless or a whole array of them. And how they get funding is really the challenge today. It’s been a challenge for a long time.

And so when I work with a lot of nonprofits, I always say at the beginning, “Where is your money going to come from? And how are you going to keep this going?” And so sustainability is a common conversation I have with a lot of my nonprofit clients. And because of my experience in the sector, I sometimes help them figure out, where’s my other source? Where can I get money? Can I get grant funding versus do I have to do a fundraiser versus all of those different challenges?

Of course, the nonprofit sector, if you’re assuming we’re talking about a tax-exempt organization, has to navigate through all of the requirements to be tax-exempt and they have to comply with AG requirements too. And so that’s something that it takes an experienced lawyer to tell them what they can do and not do, and how to navigate through that. And so there is always that challenge that you don’t have in a for-profit business because you don’t have that oversight that exists for a non-profit.