On Wednesday, September 22, 2010, the law firm of Rucci, Burnham, Carta & Carello, LLP with offices in Darien, New Canaan and Wilton together with the Shelton accounting firm Dworken, Hillman, LaMorte & Sterczala, P.C. gave a seminar on Not-for-Profits at the New Canaan Historical Society. The seminar was cosponspored by The Bank of New Canaan.

Attorneys Joseph J. Rucci, Jr. and Amy S. Zabetakis gave presentations on creating the Not-for-Profit model, IRS applications and organizational structure, rewards, responsibility and risks and emerging forces in the not-for-profit world.  Eric Hendlin and Jim Cosgrove of Dworken, Hillman, LaMorte & Sterczala, P.C. discussed important accounting and tax issues. The seminar was concluded with attendees being able to get some specific questions answered.

Organizations failing to comply with applicable laws risk losing their tax exempt status or facing criminal or civil penalties. Individual directors may also be held personable liable. Directors who are obliged to set policy are on the front line. Federal and state volunteer statutes may not be enough to protect an organization or its individual board members.  Board members should learn how to evaluate the risks of their organizations and protect themselves.

Not-for-profit directors must fulfill their responsibilities in good faith and in a manner which complies with duty of care and duty of loyalty. Directors who are normally unpaid volunteers set policy to be implemented by management, whether a Chief Executive Officer or Executive Director.

With respect to Connecticut not-for-profits, the Attorney General has the responsibility of oversight and investigation of these organizations.

With so many citizens in Fairfield County involved in volunteering in one way or another, the issue of governance, accounting and taxes of not-for-profit organizations was of interest to those who attended this discussion. Attendees left the presentation with an increased understanding of the issues and obstacles that confront all not-for-profit boards.