SlideShare a Scribd company logo
1.Createandmaintaineasyreferencechecklists/flowchartsfornewleaderstoinherit:
a)Organizaonalchartsarehelpfultonewboardmembers/leadersandrequirestructuralreview.
b)“Who’sonFirst”listsgivestructuretoregulardecision-makingandcrisisresponse.
c)CAUTION:Knowingwhotocallmaybebeerthanhavingapre-plannedresponse.
2.Knowandupdateyourcontactpointsperiodically(annually?withleadershipchanges?):
a)Who(person/enty/service)isyouragenttoreceiveserviceofprocess/officialnocesif
organizaonissubpoenaedorsued,etc.?Filedwiththestateagencies?
b)Determinewhospeaksfortheorganizaonpublicly(andwhoshouldnot)—haveaplan.
c)Alsoconsiderwhatshouldhappenwhenalawenforcementagent/otherofficialvisitorcomes
calling—ithappens!
d)Havedirectorssignaconflictofinterestpolicy,andbesuretheyalsounderstandduesofloyalty
andlimitsofauthoritywhendealingwithemployeesand3rdpares.
3.CarryandperiodicallyreviewyourDirectorsandOfficers(D&O)Insurancewithanexperienced
professionaltodeterminethatcoverageisadequatetocoverknownrisks.
4.Knowwhereyourgoverningdocuments,operaonaldocuments,andelectronicdocumentsand
informaonaremaintained,andwhomaintains/hasaccesstoeach.
5.Takealookat/updateyourgoverningdocumentsperiodically:
a)Areyoufollowingproceduresprescribedbyyourbylaws,etc.?Dotheyworkforyou?
b)Isyourmissionslltheonestatedinyourmissionstatement?
Avoiding/SurvivingLitigation:
BestPracticesforNonprofits
ByLauriE.Cleary|LitigationAttorney
lecleary@lerchearly.com
lerchearly.com

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