Hot off the press is Volume 77 Number 9 October 2017 edition of The Iowa Lawyer, published by the Iowa State Bar Association. Inside the cover (featuring a great piece on the Iowa Court of Appeals) is my second article in a series of four regarding Iowa Court Rule 39.18. The Rule involves succession planning for solo and private legal practitioners. However, while targeted to lawyers, the eight simple steps for a successful business succession are also applicable to business owners and entrepreneurs in other industries as well.
Click here or on the image below and scroll to page 14 to give it a read.
Any questions after reading? Feel the urge to get started on your much needed business succession plan? Feel free to contact me any time to discuss. I offer a one-hour free consultation, without any obligation. I can be reached any time at my email, gordon@gordonfischerlawfirm.com, or by phone at 515-371-6077.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/10/rawpixel-com-369788.jpg37285615Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2017-10-11 09:40:462020-05-18 11:28:57Read My Latest Article in The Iowa Lawyer
In wise words attributed to Voltaire (and the Spider-Man comic book), “With great power, comes great responsibility.” Never have these words been more true than when it comes to serving on a nonprofit’s board of directors. Being asked or elected to serve on a board can be a huge honor, but it also comes with great legal and fiscal responsibilities.
Legal Duties
Let’s start with three of the major legal duties:
Duty of care: This means that board members are expected to actively participate in making decisions, resolving issues, and participate in planning.
Duty of loyalty: Board members must put the interests of the nonprofit ahead of their own personal and professional interests. This means that even merely potential conflicts of interest must be studiously avoided. (Your nonprofit MUST have a Conflict of Interest Policy that each board member signs.)
Duty of obedience: Compliance with all local, state, and federal regulations and laws applicable to the nonprofit is an essential responsibility for board members.
Additionally, these three major legal duties ensure the organization is committed and stays true to its stated mission.
Financial Duties
Board members must act as fiduciaries by closely overseeing the nonprofit’s finances. Board members are tasked with reviewing financial reports (i.e. donations received and expenses), evaluating policies (such as a cash handling policy or a gift acceptance policy), and approving budgets. They must also take into account the resource needs of the organization, in addition to accountability to donors, parties served, and the general public.
Whether you’re donating your time and serving on a nonprofit board, or running a nonprofit and are training the board (sometimes called “managing up,” and not an easy thing to do), it’s important the aforementioned duties are fully explained and understood by all parties.
Let me suggest two good and very practical ideas. First, consider providing a board orientation, once a year, where the entire meeting is devoted to an outsider explaining and discussing with the board the full extent of its legal and fiscal duties. Second, consider drafting and distributing a “job description,” not only for your employees, but also for your board members. Put in writing what you expect of the board, including the legal protection they must offer.
Working with nonprofit leaders is one of my passions and a critical part of my main mission to promote and maximize charitable giving in Iowa. If you’re on the board of, or work for a nonprofit that is facing challenges, or if you simply want to be prepared to avoid challenges, don’t hesitate to reach out.
I can be contacted at anytime by phone (515-371-6077) or email to schedule a free consultation.
In an often overlooked aspect of estate planning, don’t forget about the oh so important beneficiary designations. Sure, there are six basic “must have” estate planning documents, but beneficiary designations (sometimes called PODs and TODs) on accounts actually trump whatever is written in your will.
Savings and checking accounts, life insurance, annuities, 401(k)s, pensions, and IRAs are all transferred via beneficiary designations.
For example, let’s say Jane passes away. Her will states that all her property should go to her brother, but her 401k lists as beneficiary an ex-husband. Guess what? The proceeds of the 401k will go to the ex-husband because he was listed as the designated beneficiary, despite the fact that Jane intended her 401k to go to her brother.
To avoid unfortunate situations such as our hypothetical, make sure that designations are correctly filled out and supplied to the appropriate institution. Of course, remember to keep these beneficiary designations current as well.
Checking your beneficiary designations is a smart estate planning step you can take today. But, of course, you’re going to need a solid estate plan to account for all of your assets that are not transferred via beneficiary designation. A great way to get your key estate plan documents started is by downloading my free, no-obligation Estate Plan Questionnaire. You can also contact me by phone (515-371-6077) or email with any questions or concerns.
Read My Latest Article in The Iowa Lawyer
From Gordon's Desk..., NewsHot off the press is Volume 77 Number 9 October 2017 edition of The Iowa Lawyer, published by the Iowa State Bar Association. Inside the cover (featuring a great piece on the Iowa Court of Appeals) is my second article in a series of four regarding Iowa Court Rule 39.18. The Rule involves succession planning for solo and private legal practitioners. However, while targeted to lawyers, the eight simple steps for a successful business succession are also applicable to business owners and entrepreneurs in other industries as well.
Click here or on the image below and scroll to page 14 to give it a read.
Any questions after reading? Feel the urge to get started on your much needed business succession plan? Feel free to contact me any time to discuss. I offer a one-hour free consultation, without any obligation. I can be reached any time at my email, gordon@gordonfischerlawfirm.com, or by phone at 515-371-6077.
Legal & Financial Responsibilities of Nonprofit Board Members
NonprofitsIn wise words attributed to Voltaire (and the Spider-Man comic book), “With great power, comes great responsibility.” Never have these words been more true than when it comes to serving on a nonprofit’s board of directors. Being asked or elected to serve on a board can be a huge honor, but it also comes with great legal and fiscal responsibilities.
Legal Duties
Let’s start with three of the major legal duties:
Additionally, these three major legal duties ensure the organization is committed and stays true to its stated mission.
Financial Duties
Board members must act as fiduciaries by closely overseeing the nonprofit’s finances. Board members are tasked with reviewing financial reports (i.e. donations received and expenses), evaluating policies (such as a cash handling policy or a gift acceptance policy), and approving budgets. They must also take into account the resource needs of the organization, in addition to accountability to donors, parties served, and the general public.
Whether you’re donating your time and serving on a nonprofit board, or running a nonprofit and are training the board (sometimes called “managing up,” and not an easy thing to do), it’s important the aforementioned duties are fully explained and understood by all parties.
Let me suggest two good and very practical ideas. First, consider providing a board orientation, once a year, where the entire meeting is devoted to an outsider explaining and discussing with the board the full extent of its legal and fiscal duties. Second, consider drafting and distributing a “job description,” not only for your employees, but also for your board members. Put in writing what you expect of the board, including the legal protection they must offer.
Working with nonprofit leaders is one of my passions and a critical part of my main mission to promote and maximize charitable giving in Iowa. If you’re on the board of, or work for a nonprofit that is facing challenges, or if you simply want to be prepared to avoid challenges, don’t hesitate to reach out.
I can be contacted at anytime by phone (515-371-6077) or email to schedule a free consultation.
Don’t Forget About Beneficiary Designations
Estates & Estate Planning, Taxes & Finance, Wills, Trusts & EstatesIn an often overlooked aspect of estate planning, don’t forget about the oh so important beneficiary designations. Sure, there are six basic “must have” estate planning documents, but beneficiary designations (sometimes called PODs and TODs) on accounts actually trump whatever is written in your will.
Savings and checking accounts, life insurance, annuities, 401(k)s, pensions, and IRAs are all transferred via beneficiary designations.
For example, let’s say Jane passes away. Her will states that all her property should go to her brother, but her 401k lists as beneficiary an ex-husband. Guess what? The proceeds of the 401k will go to the ex-husband because he was listed as the designated beneficiary, despite the fact that Jane intended her 401k to go to her brother.
To avoid unfortunate situations such as our hypothetical, make sure that designations are correctly filled out and supplied to the appropriate institution. Of course, remember to keep these beneficiary designations current as well.
Checking your beneficiary designations is a smart estate planning step you can take today. But, of course, you’re going to need a solid estate plan to account for all of your assets that are not transferred via beneficiary designation. A great way to get your key estate plan documents started is by downloading my free, no-obligation Estate Plan Questionnaire. You can also contact me by phone (515-371-6077) or email with any questions or concerns.