1. LINC: Types of Nonprofit Boards Kimberly A Lowe February 25, 2016

2. What we are going to cover Participant Experience Poll Different Types of Nonprofit Organizations and Boards –Personalities –Activities –Pitfalls Questions 2 © 2016 Fredrikson & Byron, P.A.

3. Tell me what you know What Nonprofit Board(s) have you served on or want to serve on? Why? © 2016 Fredrikson & Byron, P.A. 3

4. Charitable Organizations – 501(c)(3)s Public Charities –Boots on the ground –Broad base of funding –Sometimes grant making organizations –Either donative or fee for service Private Operating Foundations Private Foundations –Limited number of funders –Makes grants to PCs and POFs © 2016 Fredrikson & Byron, P.A. 4

5. Public Charities – Educational Schools –Charter Schools – parents and teachers –Private Schools – alumni, parents, community leaders, pastor, archbishop –Colleges and Universities State – land grant or others (UofM versus St. Cloud State) Private institutions – St. Kates, St. Thomas, Macalester, St. Olaf, St. Johns and St. Bens –Trade Schools or specialty institutions Dunwoody The College of Visual Arts Topical Educational Organizations – MN CLE © 2016 Fredrikson & Byron, P.A. 5

6. Public Charities -- Churches Churches are special in the eyes of the IRS. Term Church includes conventions, associations of churches & integrated auxiliaries of a church. Faith and/or denomination dictates board structure and governance tasks “Board” is populated by parishioners selected by: –Senior religious leader –Congregation Some Churches have a closed board structure populated by “management” © 2016 Fredrikson & Byron, P.A. 6

7. Public Charities – Religious Organizations Religious organizations that are not churches typically include nondenominational ministries, interdenominational and ecumenical organizations, and other entities whose principal purpose is the study or advancement of religion. © 2016 Fredrikson & Byron, P.A. 7

8. Public Charities -- Agencies Client serving organizations where services are paid for by the government on a person served basis –Minnesota Autism Center –Opportunity Partners –Minnesota Adoption Resource Network These boards tend to have a mixed bag of board members including professionals in the field, people served representatives Complex mix of issues given funding source Earned revenue models are tricky to navigate © 2016 Fredrikson & Byron, P.A. 8

9. Public Charities – Arts Organizations Promotion of the arts Includes everything from: –MN Orchestra –Guthrie –Local dance or theater companies –Art or music schools Buildings that house these activities –Ordway Center for the Arts © 2016 Fredrikson & Byron, P.A. 9

10. Public Charities – Civic Orgs Blend of cultural activities –Libraries J.J. Hill Center Friends of the Minneapolis Public Library –Museums MiA Minnesota History Center Minnesota Science Museum –Minnesota Zoo (legislative) © 2016 Fredrikson & Byron, P.A. 10

11. Public Charities – Child Focused Girl Scouts/Boy Scouts/YMCA/YWCA –Professional boards Booster Clubs for schools or other activities – parent boards Amateur Athletic Organizations –Hockey, Gymnastics, Soccer, School Districts, etc. –Parent occupied boards; transitory © 2016 Fredrikson & Byron, P.A. 11

12. Public Charities – Access to Justice Many of you may serve on our local access to justice boards: –VLN –LegalCORPS –Children’s Law Center –Mid-Minnesota Legal Aid Boards made up of lawyers with the seats rotated from firm to firm Funding sources are critical © 2016 Fredrikson & Byron, P.A. 12

13. Public Charities – Healthcare Nonprofit Healthcare Systems tend to have professional boards populated by high level business people Community Health Organizations have local boards populated by people served as well as professionals Hospitals tend to have foundations that support the hospitals but these are fundraising boards populated by people who can attract and ask for money. Lawyers do tend to serve on these boards due to the prevalence of healthcare practices in our large law firms –United Hospital Foundation © 2016 Fredrikson & Byron, P.A. 13

14. Foundations (may be public charities) Purpose is to raise and give away money Family Foundations – funded by a wealthy families –Some are very large now Community Foundations – pooled funds of money from various sources directed by the community foundation Foundations connected with trade associations Controlled Foundations – connected to law firms or for profit corporations © 2016 Fredrikson & Byron, Pa.A. 14

15. Association World The nonprofit sector is populated with many, many associations Still a “nonprofit” but not a charitable organization Board is composed of representatives of the members served by the association Professionally managed © 2016 Fredrikson & Byron, P.A. 15

16. Contact Info Kim Lowe 612-492-7324 klowe@fredlaw.com Presented by © 2016 Fredrikson & Byron, P.A. 16