Wednesday, January 16, 2008

LegalCORPS

LegalCORPS, a young nonprofit service, can help other small nonprofits in Minnesota find and stay on sound legal footing as they pursue their community-serving missions. LegalCORPS connects volunteer business lawyers with small nonprofits (and low-income owners of small businesses) that need legal services, but cannot afford them.

“People involved with nonprofits usually don’t place legal issues at the top – or anywhere near the top, for that matter – of their list of concerns,” said Michael Vitt, LegalCORPS’ Executive Director. “They defer that, understandably putting their time, energy and other resources directly into the mission – which is the reason they’re involved with the nonprofit in the first place.”

“That is, until a crisis emerges,” Vitt adds. “By then, the entire mission could be at risk. Often, ‘preventive medicine’ could have kept the crisis from occurring. They could consider getting legal advice as a way of defending their mission.”

The perceived cost of legal services frequently deters small nonprofits from seeking the legal “preventive medicine” they need, he notes. LegalCORPS, not quite four years old, has access to 200 or more business lawyers in the state who want to provide pro bono service in areas of the law in which they are very familiar. For small, incorporated nonprofits with 501(c)3 or (c)4 status, LegalCORPS volunteers can advise and assist in matters like:

• contracts and transactions
• mergers or joint ventures
• employment and volunteer policies
• payroll tax issues
• real estate leases, acquisition and taxes
• board duties and operations
• managing liability risks
• maintaining tax-exempt status
• government regulations

LegalCORPS’ volunteers do not handle litigation or adversarial proceedings, but can assist nonprofits in such matters by locating help, Vitt says. To qualify for LegalCORPS’ pro bono legal services, a nonprofit needs to meet LegalCORPS’ annual budget guidelines, which it is seriously reviewing, Vitt reports. (Current guidelines: $200,000 or less annual budget.) However, if an organization is not yet incorporated with tax-exempt status, or if it does not meet the budget guidelines, LegalCORPS will do what it can to assist the organization in finding the help it needs, Vitt emphasizes.

Generally, LegalCORPS assesses a $50 administrative fee to help defray its expenses. However, on prior requests from qualified organizations that cannot afford even that, it can waive the fee, Vitt says.

LegalCORPS is Minnesota’s only statewide business law pro bono program, Vitt notes. Its volunteer lawyers come from many parts of the state, although most practice in the Twin Cities Metropolitan Area, he says. However, LegalCORPS lawyers and clients can handle most matters by phone, fax and e-mail – so distance is rarely a concern, he observes.

Nonprofits can request pro bono legal services from LegalCORPS by calling 1- 888-454-5267 (or 612-752-6678 in the metropolitan area), or e-mail info@legalcorps.org. LegalCORPS’ Web site – www.legalcorps.org – has information and forms available for download.

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