Attorneys & Nonprofit Consultants: Keep Their Communications Confidential

In response to the demand for improved accountability, nonprofit organizations are increasingly using the services of attorneys and business consultants, including accountants and fraud examiners, to improve operations and reduce liability exposure. Competent legal advice involving fundraising (espe...

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Bibliographic Details
Published in:Nonprofit world 2004-01, Vol.22 (1), p.11
Main Authors: Pacini, Carl, Ritchie, William J
Format: Magazinearticle
Language:English
Subjects:
Accountability
Accounting
Attorneys
Client relationships
Communication
Confidential relationships
Consultants
Disclosure
Federal court decisions
Fraud
Fund raising
Guidelines
Law
Law firms
Legal counsel
Management consultants
Nonprofit organizations
Privileged communication
State court decisions
Third party
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Summary:In response to the demand for improved accountability, nonprofit organizations are increasingly using the services of attorneys and business consultants, including accountants and fraud examiners, to improve operations and reduce liability exposure. Competent legal advice involving fundraising (especially on the Internet), fund accounting, fraud, board liability, protection of volunteers, and the like often requires the use of experts or consultants in accounting, fraud examination, information systems, marketing, and finance. Effective performance by a consultant, particularly in financial matters, requires open communication between the nonprofit organization and the expert. Some of these communications contain information that the nonprofit organization would prefer to remain secret. In the context of litigation or government investigations, however, the content of the nonprofit-expert communications may require disclosure to an adversary or government agency. Such disclosure may result in undesirable costs and consequences for nonprofits and their consultants. This article discusses the laws that govern attorney-client privilege and offers tips to keep information confidential.
ISSN:1553-4855