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6/23/2020

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Forming a Non-Profit Organization Part 3: Consider Fiscal Sponsorship

 
In Part 1, we covered how to set up your non-profit organization as a legal entity, and in Part 2, we looked at applying for tax-exempt status with IRS Form 1023-EZ. But chances are that if your organization qualifies for the EZ application for tax-exempt status, then you might want to consider fiscal sponsorship. 
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Just what is fiscal sponsorship, and how can it help your new non-profit organization or project?

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6/16/2020

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Essential HR Policies: Anti-Harassment and Non-Discrimination

 
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​There are a wide range of laws that cover how you as an employer treat your employees at every step in the employment process: from hiring, firing, promotions, harassment, training, wages, and benefits. And as an employer, you can be held vicariously liable for the actions of your employees, meaning if you “allow” or don’t prevent harassment or discrimination in your workplace, you could find yourself and your business or nonprofit named in a discrimination lawsuit. By putting the right anti-harassment and non-discrimination policy in place (and following it), you will be able to show that you acted appropriately to prevent discrimination and respond to workplace harassment. 
And these aren’t just issues for “big” business. Yes, accusations at larger companies make headline news, but for every case you read about against a large corporation, there are several less reported cases against small businesses and non-profits. Not only do these cases take precious time away from your business (not to mention the emotional toll litigation can take on you personally), but they are also incredibly expensive to defend. The problem seems especially prevalent in family-owned businesses where non-family members often feel they are being treated differently and unfairly or that they cannot speak up against one of the family members who is engaging in unwanted behavior. 

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6/9/2020

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Works Made for Hire: Who owns the creation?

 
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The bundle of rights associated with the concept of “copyright” exists from the moment a work is created in a fixed form. However, those rights generally belong to the creator or author of the work. So what happens when that author is someone you are paying to create the work for you, your business, or non-profit?
​Enter the concept of “works made for hire.” If a work meets the legal requirements to be considered a work made for hire, then the employer will be considered the author of the work even if an individual employee was actually the original creator. 

What are the legal requirements for works made for hire?
"Just because you call it a 'work made for hire' doesn't make it so."

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6/2/2020

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Raising Money From Investors Part 4: Regulation D "Safe Harbor" Provisions

 
This week we continue our series on raising money from investors. In Part 1, we covered why this complex area of law matters, even if you’re just raising money from friends and family. Complying with securities laws requires that you register at both the federal and state level or comply with an exemption (again, at both levels). In Part 2, we explained the common exemptions to registration at the state level. In Part 3, we looked at the common exemptions at the federal level. As we explained there, some of the federal exemptions leave quite a bit of room for interpretation, causing some businesses to rely instead on certain “safe harbor” provisions. 
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Just what are the "safe harbor" provisions? Can you ever advertise that you're seeking investors? And is an offering document really necessary?

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