Google Announces New Service for Nonprofits

Google has announced a suite of tools for you to promote your non-profit.  Click here for article from Fast Company

Sarbanes Oxley for Non-Profits

The Public Company Accounting Reform and Investor Protection Act was passed in 2002 after the Enron debacle.  It is commonly referred to as Sarbanes Oxley and mainly effects public companies, although it does have two provisions that apply to Non-Profits. 

The first is Whistleblower Protection and it shields Employees or volunteers from retaliation for reporting waste, fraud or abuse.  Companies should have a documented whistleblower protection policy that allows confidential reporting of such matters, includes a process for investigation of reported issues, and a process for determination of findings from such an investigation.  Regardless of the outcome the employee cannot be subject to firing, harassment, or failed to be promoted if justified.  The policy should be signed by the employees and posted near your other employment posters.  Here is a link to a Model Whistleblower policy for Non-Profits.

Secondly you should have a documented  Document Management & Preservation Policy.  Issues and thing to consider are:

• What documents should be saved and why?
• Do documents include paper, emails, & electronic files?
• How long are you going to keep the Documents or files?
• How do you enforce the policy with staff and volunteers?

Here is a link to a Model Document Management & Preservation Policy.  I think it gives good guidelines on time but does not include all procedures that should be considered.  Keep in mind, state laws may be more strict and should be considered when drafting your policies.

How to Get Punitive Damages Coverage even where Uninsurable

Since Oklahoma and about 1/2 of all states do not permit insurance carriers to indemnify in the event a court awards punitive damages you could easily justify that punitive damages exclusion in your Directors & Officers Liability.  Punitive Damages are awarded in about 6% of all cases. There are many problems with this including, lawsuits filed in states where punitive damages are allowed even though you are in a state that does not allow them.  One of the best forms of affordable protection is to add a "Most Favorable Venue" provision or endorsement to your policy.  

Most favorable venue provisions state that with respect to the insurability of punitive damages, the law of the jurisdiction most favorable to the insurability of punitive damages will apply, provided the jurisdiction:

1. is where the punitive damages were awarded, or
2. is where the act giving rise to the punitive damages award occurred, or
3. is where the insured is incorporated or maintains its principal place of business, or
4. is where the insurer is incorporated or maintains its principal place of business.

I always ask for this coverage for our clients and our standard form now includes this type of coverage for no additional premium. Note that this has not been tested in a court case as of the date of this writing.  By Chris L. Moxley