Tips and Answers to Your Questions
Human Resources

Finding and Using a Nonprofit Legal Specialist

We generally recommend that nonprofits engaged in strategic restructuring engage a consultant rather than an attorney to facilitate the process. Nonetheless, in all but the simplest of partnerships, use of an attorney will be necessary before the deal is signed. A few points can help you to make the most of your relationship with an attorney.

Don’t rely on pro bono counsel, unless the person is both a nonprofit specialist, and can promise you they will be able to make your project a priority. Pro bono projects often fall to the bottom of the busy lawyer’s “to do” list. Plus, nonprofit corporate law varies from state to state, and is quite different from business corporate law. Find an attorney who is an expert in nonprofit law. If nonprofit colleagues cannot recommend someone, try your local community foundation, or the Bar Association’s legal referral service. Be prepared to pay, however. Lawyers are not inexpensive, so careful husbanding of their time is essential.

Work with all the parties to your strategic restructuring to engage a single attorney. Nonprofit specialists are accustomed to representing several parties in a partnership where the parties have already agreed on what they want to accomplish (typically through a negotiations process facilitated by a consultant). This can only work if the parties are not in significant conflict. Again, work with a consultant to resolve differences. Then, when the deal is negotiated, bring in an attorney to review it and suggest approaches to implementation.