The Compleat Lawyer Winter 1997, Volume 14, No. 1 copyright American Bar Association. All rights reserved.
General practice is a tough life.
Conflicts of interest, fiduciary requirements of disclosure, charitable gift substantiation, and political activities prohibitions are just a few of the garden variety esoterica that cross a general practitioner's path as frequently as hors d'oeuvres at social events. When members of the bar take on the duties of a charitable board membership without compensation, they assume fiduciary duties defined under state and federal law, as well as the mission and guidelines of the particular nonprofit organization. Check to be sure that the organization has indemnification language in its bylaws and has obtained sufficient amounts of directors and officers insurance. While this booklet is specific to Massachusetts state law, it is an excellent resource for everyone, and provides a concise statement of the universal principles on this subject. This feature of the 1996 tax legislation, which penalizes nonprofit organizations for overpaying executives and other improper dealings, is a hot topic.