Regulatory Compliance & Legal Framework Flashcards

Which of the following best describes 'indemnification' as it applies to nonprofit board members?

Answer: The organization's commitment to protect directors from personal liability for good-faith actions

Indemnification is the organization's obligation or option to cover a board member's legal expenses and liability for actions taken in their official capacity in good faith.

Under the National Labor Relations Act (NLRA), employees have the right to:

Answer: Engage in concerted activities for mutual aid or protection, including union organizing

The NLRA guarantees employees the right to organize, bargain collectively, and engage in concerted activities for mutual aid or protection.

A grant agreement requires the organization to maintain records for five years after the grant period ends. The executive director's BEST approach is to:

Answer: Establish a formal records retention policy that meets or exceeds all contractual and regulatory requirements

A formal, organization-wide records retention policy ensures consistent compliance with all applicable contractual and regulatory retention requirements.

The 'charitable solicitation registration' requirement most commonly means that a nonprofit must:

Answer: Register with each state where it solicits charitable contributions

Most U.S. states require nonprofits to register with the state's charity regulator before soliciting donations from residents of that state.

The Pregnancy Discrimination Act (PDA) requires employers to treat pregnant employees:

Answer: The same as other employees who are similar in their ability or inability to work

The PDA amended Title VII to prohibit sex discrimination based on pregnancy, childbirth, or related conditions, requiring employers to treat pregnant workers the same as others with similar work capacity.

An executive director who knowingly submits a false claim to the federal government may face liability under:

Answer: The False Claims Act (qui tam provisions)

The False Claims Act imposes liability on individuals and organizations that knowingly submit false or fraudulent claims for federal funds, and includes qui tam provisions allowing whistleblowers to sue on the government's behalf.

Which legal concept holds that an organization may be bound by actions taken by an agent who had no actual authority, but whose authority a third party reasonably believed to exist?

Answer: Apparent authority

Apparent authority arises when an organization's conduct causes a third party to reasonably believe that an agent has authority to act on the organization's behalf, even if actual authority was not granted.