Nonprofit leaders often struggle with establishing and managing geographically based or special-interest-based chapters or sections. Striking the right balance between control and autonomy is often a struggle. Whether your organization is a national trade or professional association, a public charity, an international NGO, or an issue-based advocacy group, many organizations have relationships with chapters and sections that carry with them unique legal, tax, and management risks.
This program will discuss the pros and cons of typical chapter and section structures, examine how to effectively minimize legal risks to the parent organization, provide an update on changes to the group exemption process, and outline tips and strategies to help resolve friction and tension in the component family. In addition, we will address questions such as:
- What strategies and approaches tend to work best in fostering healthy, amicable parent-chapter/section relationships, and which tend not to?
- What are the most common legal risks for the parent in the activities of its chapters or sections? How can those be mitigated?
- If a chapter has lost its federal tax exemption, how can it be reinstated?
George E. Constantine, Partner, Venable LLP
Judith Y. Kim, Counsel, Venable LLP
Andrew L. Steinberg, Associate, Venable LLP