Mission Alone Won’t Protect You
If you’re running a nonprofit, chances are you’re doing it for the right reasons. You’re focused on impact, community, and purpose — not profit. But good intentions don’t insulate organizations from serious legal risk. In fact, some of the most mission-driven nonprofits I’ve encountered have found themselves in legal trouble not because they were doing the wrong thing — but because they didn’t have the right guidance.
I’ve worked with nonprofit organizations at every stage: startup, growth, restructuring, and even crisis. And I’ve seen the difference it makes when organizations treat legal counsel as a strategic partner rather than a last resort.
Where Things Go Wrong
Here are just a few of the issues that come up — often after it’s already too late:
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Contract disputes with vendors, performers, or service providers that could’ve been avoided with clear, enforceable agreements.
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Bankruptcies caused by poor financial oversight or unrealistic program commitments, compounded by the absence of legal guardrails.
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Bylaws and governance documents that no one has read in years, and that don’t match how the organization actually operates.
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Volunteers or board members making well-meaning but unauthorized decisions, exposing the organization to liability.
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Personnel issues that start as misunderstandings but escalate into real risk due to a lack of clear policies or legal boundaries.
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Investigations — internal, external, or media-driven — that the board isn’t prepared to navigate without legal guidance.
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Fiduciary missteps, where leadership unintentionally breaches their duties of care or loyalty to the organization.
In some cases, these issues are survivable. In others, they lead to loss of funding, leadership turnover, reputational damage — or worse, dissolution.
Don’t Wait for the Crisis
Legal counsel shouldn’t be the person you call after something goes public or after a cease-and-desist letter hits your inbox. Good legal advice is preventative. It ensures your contracts are solid, your policies are clear, and your structure matches your reality.
In many of the cases I’ve handled, the red flags were visible long before the problem surfaced. But no one asked the right questions — or they assumed a board member with legal training could “just handle it” without the independence and perspective outside counsel brings.
When a problem does arise, the last thing you want is for your attorney to be learning your structure, history, and personalities for the first time under pressure. That learning curve costs time, money, and leverage.
What Ongoing Counsel Can Do for You
Here’s what regular legal support looks like for a healthy nonprofit:
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Reviewing and updating governing documents, bylaws, and board resolutions
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Drafting and negotiating vendor contracts, MOUs, and grant agreements
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Helping boards navigate conflict, discipline, or removal of members
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Developing clear volunteer policies, codes of conduct, and liability waivers
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Advising on crisis management when leadership, finances, or reputation are at stake
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Ensuring compliance with state and federal nonprofit law
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Guiding the organization through transitions, restructuring, or wind-downs when necessary
A Word About Values
I take on nonprofit clients because I believe in what they’re doing. I know the margins they operate on, the burnout they face, and the political headwinds they sometimes encounter just for existing. I also know how devastating it can be when a nonprofit that’s doing vital work collapses under a legal problem that could’ve been prevented.
Legal support is not a luxury — it’s part of good governance. And when it’s done well, it protects your mission, your people, and the community you serve.
If you’re running a nonprofit — or sitting on the board of one — and you’ve never had a real conversation with an attorney about risk, now’s the time. You don’t need to be in crisis to take legal strategy seriously. In fact, the best time to build that relationship is long before you need it.
About the Author
Nick Harrison is the founding attorney of Harrison-Stein PLLC, a Washington, D.C.–based firm that serves individuals, nonprofits, and small businesses. He has represented organizations through governance disputes, bankruptcies, financial investigations, and public controversies — with a focus on protecting mission-driven clients and the communities they serve.
