Practical Education Network LBG
Asset Protection and Risk Mitigation for a 501(c)(3)
Summary:
Provide legal consultation on asset protection, risk mitigation, and financial security strategies for a nonprofit facing potential legal and political scrutiny.
Referred by:
Jurisdictions: U.S.
About the Organization: PEN’s mission is to enable every African child to learn by doing. It offers a teacher training program for K-12 STEM teachers to leverage locally-available materials to transform their classrooms into practical learning spaces.
Legal Entity Type: Nonprofit/Charity
SDG(s):Decent Work and Economic Growth, Quality Education
Legal Issue(s):
Education Trust, a 501(c)(3) nonprofit dedicated to dismantling racial and economic barriers in the American education system, is seeks legal guidance on protecting its resources and assets from potential legal, financial, and political instability. Given increasing scrutiny of nonprofits, the organization is exploring strategies to mitigate risks, including:
- Legal structures to safeguard assets, such as creating a separate LLC or alternative entities. (A suggestion outlined in Philanthropy Today)
- Financial security measures, including diversifying banking options, moving off-shore, and exploring alternative funding mechanisms.
- Strategies for maintaining operational continuity in case of audits, lawsuits, or asset freezes.
The organization would appreciate a consultation to discuss what measures are realistically viable given their operations and mission and the most effective strategies for asset protection and risk mitigation.