3 Legal Risks for Your Non-Profit

1. Employee Issues

Employee issues can pose a threat to nonprofits in many ways. They may engage in misconduct, such as theft or vandalism, or they may disclose confidential information, such as trade secrets or donor lists. They may also make false accusations or negative comments about the nonprofit, its leadership, or its programs, which can damage the organization's reputation and donor support. Nonprofits should have clear policies for disciplining and terminating employees, as well as for protecting their confidential information and trade secrets.

2. Conflict of Interests

Nonprofits have a duty to serve the interests of their beneficiaries, donors, and the public. However, when an employee's personal interests’ conflict with the nonprofit's mission, the organization may face legal, financial, and reputational risks. Conflict of interest can arise when an employee engages in activities that benefit themselves or their family members, or when they use their position to gain personal advantages. Nonprofits should have policies in place to prevent and manage conflicts of interest, such as disclosure requirements, recusal obligations, and monitoring procedures.

3. Discrimination and Harassment

Discrimination and harassment can happen in any workplace, and nonprofits are not immune to these issues. Nonprofits are required by law to provide a safe and respectful workplace for their employees. Discrimination and harassment can take many forms, such as race, gender, age, religion, disability, and sexual orientation. If a nonprofit ignores or fails to address these issues, the organization may face lawsuits, fines, and damage to its reputation.

Bracy Hawkins Law, P.C. has significant experience advising nonprofit organizations on employment and labor law issues. We care about our community and understand the mission of nonprofits, which is to serve. Nonprofits provide a voice for the voiceless and empower our community. If you have a question or concern, please contact our office for a consultation today. We provide a special rate for all nonprofit organizations.