Difference between revisions of "Friends Organizations"
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==U.S. Friends Organizations== | ==U.S. Friends Organizations== | ||
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With that distinction in mind, let us first look at the operation of a United States friends organization and the organization it supports. I would like to stress the importance of the rule in this area that, in order to fulfill the responsibilities of stewardship that we talked about, the board of the United States organization, even a friends organization, still has that duty to fulfill its stewardship duties in the United States. That is, it cannot simply pass on that role and responsibility to the organization that it supports abroad. | With that distinction in mind, let us first look at the operation of a United States friends organization and the organization it supports. I would like to stress the importance of the rule in this area that, in order to fulfill the responsibilities of stewardship that we talked about, the board of the United States organization, even a friends organization, still has that duty to fulfill its stewardship duties in the United States. That is, it cannot simply pass on that role and responsibility to the organization that it supports abroad. | ||
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Let me give you an example of how this might be done systematically with a minimum of effort for both parties, and in a way that recognizes that time is not an unlimited resource. Let us assume that there is a U.S. friends group that supports a Kilimanjaro school in Arusha, Tanzania. In this case, money is raised by the friends group to support the school. The proper next step is for the friends board to decide essentially to make a grant to the school for those same purposes. The school then agrees, by way of a simple grant agreement, to distinguish the transfer and distribution of U.S. funds to the foreign organization from simply a pass-through. (This can be done, by the way, in a very simple one or two page formally written letter.) | Let me give you an example of how this might be done systematically with a minimum of effort for both parties, and in a way that recognizes that time is not an unlimited resource. Let us assume that there is a U.S. friends group that supports a Kilimanjaro school in Arusha, Tanzania. In this case, money is raised by the friends group to support the school. The proper next step is for the friends board to decide essentially to make a grant to the school for those same purposes. The school then agrees, by way of a simple grant agreement, to distinguish the transfer and distribution of U.S. funds to the foreign organization from simply a pass-through. (This can be done, by the way, in a very simple one or two page formally written letter.) | ||
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Through this grant agreement, the school agrees to use the funds for school purposes and importantly agrees to report back to the friends organization. They will write a report describing the expenditures and the accomplishments of the grant. If the friends organization sees that the funds are being used inappropriately, or is not getting a report, or is simply not satisfied for some reasons as it carries out its duty of stewardship, then it has the legal right and responsibility to refuse to make a grant. By doing so, it does fulfill its duty under the law, although that step is very rare. | Through this grant agreement, the school agrees to use the funds for school purposes and importantly agrees to report back to the friends organization. They will write a report describing the expenditures and the accomplishments of the grant. If the friends organization sees that the funds are being used inappropriately, or is not getting a report, or is simply not satisfied for some reasons as it carries out its duty of stewardship, then it has the legal right and responsibility to refuse to make a grant. By doing so, it does fulfill its duty under the law, although that step is very rare. | ||
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The foundation for this article are excerpts from a presentation by Jeffrey M. Hurwit, J.D. (Founder, Hurwit & Associates) given on June 8, 2010 at the 2010 online World Congress of NGOs. The presentation was titled "Nonprofit Law: Legal and Governance Issues for NGOs Worldwide." | The foundation for this article are excerpts from a presentation by Jeffrey M. Hurwit, J.D. (Founder, Hurwit & Associates) given on June 8, 2010 at the 2010 online World Congress of NGOs. The presentation was titled "Nonprofit Law: Legal and Governance Issues for NGOs Worldwide." | ||
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Latest revision as of 18:47, 3 September 2011
Taking into account the legal duties of United States nonprofit boards, let us take examine how this impacts the relationship between United States organizations and NGOs outside the United States.
Since the laws and terminology of nonprofit cultures can vary so widely between countries, let us first make sure at the onset that we are all using in the same way two terms that are often confused.
Contents
Friends Organizations versus Chapters
Friends organization
One is the concept of a “friends organization,” sometimes called a supporting organization. (It also is often called a “friends of organization,” since so many nonprofits that support foreign charities have names that begin with those two terms, such as Friends of China Heritage Fund. However, there also are innumerable such nonprofits that do not have names that begin with those two words, such as
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