can a lawyer who works for a non profit have clients on the side?

by Ms. Astrid Langosh DDS 7 min read

While it is natural for a nonprofit’s directors to view their nonprofit corporation’s legal counsel also as their personal “go to” in times of legal disputes, such joint representation should be cautiously approached, and may be strictly prohibited. The nonprofit’s attorney is the attorney of the nonprofit.

Full Answer

Do I need a lawyer to form a nonprofit?

While many tools are available to help form a nonprofit without a lawyer, every nonprofit is unique. It's all too easy to go astray, for example by: Forming the wrong type of business. You'll need to choose between forming a nonprofit corporation or a nonprofit limited liability company (LLC). Each has advantages and disadvantages.

What do you need to know when forming a nonprofit?

A lot needs to be filed when you form a nonprofit; for example, with the state where your nonprofit will be operating, as well as with the IRS, for tax exemption. Mistakes can extend the time it takes to form your nonprofit and get it operational.

Does your charitable organization need legal advice?

Plus, with many options available for obtaining legal services, your charitable organization should be able to get needed legal advice without spending huge sums. Here are some questions and answers about when and how to bring in an attorney for help.

Why can't I Hold my nonprofit board members to a promise?

Using the wrong type of contract. Let's say the board of your nonprofit decides to require each member to spend ten hours a month fundraising. If that's not stated in the board contract, there's no legal way to hold board members to that promise.

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Can a lawyer represent two opposing clients?

The California Rules generally permit a lawyer to represent multiple clients with conflicting interests so long as all the clients have provided their informed written consent.

Can lawyers poach clients?

Stealing clients from the firm can be a breach of fiduciary duty. Take, for example, the case of the Dowd and Dowd firm. When two partners decided to leave, they used confidential information to secure funding for a new firm, secretly contacted clients, and poached employees.

Do non profits have clients?

The fact is that every nonprofit institution has three indispensable “customers”: the clients it serves, the donors who support it, and the volunteers or staff mem- bers who help get the work done.

Can you partner with a non profit?

Nonprofit partnership There are tons of different ways that you can partner with a nonprofit. One of the best things you can do for both your company and for the nonprofit is to get as many staff members involved as possible.

Can lawyers solicit clients?

In broad strokes, attorneys are free to solicit potential clients in writing, provided that the solicitations comply with certain requirements, but attorneys are not permitted to solicit by telephone or in person.

What are the exceptions to the direct solicitation rule?

There are essentially only three exceptions to such contact: (1) direct contact with clients with whom the lawyer has had a prior professional relationship; (2) direct contact with individuals with whom the lawyer has an established personal relationship; or (3) solicitation of clients for “political” purposes rather ...

What do you call nonprofit clients?

As you see above, the Supporters (customers), of a typical Nonprofit are a lot different than for profits, as their expectations are different.

Are donors considered as customers?

As the term is commonly used, a customer is the end consumer of a product.” With this in mind, it is easy to characterize donors as simply a subset of customers. They're the end users of whatever goods or services your nonprofit is offering and producing.

Are clients nonprofit stakeholders?

Nonprofits typically talk about stakeholders rather than customers. But they are the same, although more complex. A business relationship seems pretty straightforward. The company sells a service or product to a customer in exchange for money.

What are the benefits of partnering with a non profit?

5 Benefits To Partnering With A Nonprofit OrganizationReach an entirely new audience and strengthen your relationship with your current one. ... It will help solidify your brand. ... Partnering with a nonprofit can be cost-effective. ... Create positive long-term marketing relationships. ... Raise money for a nonprofit organization.

What is a nonprofit collaborative?

Nonprofit collaboration allows various organizations to join together and make even bigger strides in bettering their community and improving the world. Partnering with another nonprofit organization either in your area or nationally can provide a multitude of benefits to further your NPO's mission.

Why have a non profit partner?

A nonprofit partnership will help your company create more connections. -It can boost company morale. Nothing brings people together like helping others. When your company partners with a nonprofit, you have the opportunity to volunteer at their events.

Laying A Proper Foundation

  • From the start, nonprofits require a proper foundation if they are to flourish. Lawyers with nonprofit experience can assist with the necessary research to ensure the organization is viable. Legal counsel must discuss every aspect of the organization’s creation and all the beneficial alte…
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Importance of The Purpose Statement

  • The purpose statement is an essential document for the nonprofit. But care is needed to ensure it doesn’t create problems later for the organization. This can happen if it is peculiar and restrictive. These restrictions are not too difficult to amend, but risks are involved if a charity forgets to amend articles as decisions are made. An attorney’s advice can help the organization carefully c…
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Compliant Bylaws

  • The bylaws of every nonprofit are their main governing document and must be established from the outset. They are meant to supplement the laws defined by the state (and sometimes city) where the nonprofit is based. These legal documents are created to ensure the protection of the organization. They outline the authority levels, rights, and expectations. Non-voting directors can…
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Value of Lobbying Election

  • Charities need the correct advice when it comes to utilizing tools allowing them to advance their missions. Lobbying is one of these tools but can often not be used by nonprofits. This is because they haven’t made the 501(h) election when filing the Form 1023 exemption application with the IRS. This exemption allows the organization to spend money on lobbying within the defined gen…
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Directors and Other Classifications

  • A good lawyer offers their client recommendations on how directors should be elected and on their roles. The board of directors must share the vision of the organization and provide fiduciary duties. Making organizations aware of the importance of orientation processes for new directors is also one of the duties a lawyer can offer their nonprofit clients. Understand the difference bet…
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Financial Advice

  • The ability to give financial advice is invaluable for nonprofit clients. This advice includes: 1. Recommendations on how clients must invest prudently for overhead expenses, organizational policy creation, risk management, and technology. 2. Tax advise about certain circumstances where directors may be held personally liable. Directors are also responsible for failing to act ag…
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Conclusion

  • Nonprofit organizations are on the rise. They benefit from the proper legal representation and advice, ensuring their day-to-day tasks are not putting their charity goals at stake. Lawyers experienced in representing these organizations understand the expectations of legislation and ensure they comply.
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