Does your club or association ever enter into a relationship with another organization or business that involves the exchange of goods or services? If so, it’s important to establish a mutual understanding of the legal rights and responsibilities of your business relationship through a written document.
Many nonprofits use a “memorandum of understanding,” often a very basic contract that covers the terms of the relationship, to document the legal understanding of a partnership with another nonprofit or business. While it is recommended that your board of directors seeks legal advice when entering into any type of contract, CharityLawyer has a great blog post on questions to consider when creating a memorandum of understanding (MOU).
Take a look at CharityLawyer’s post and remember to ask these questions before signing a contract on behalf of your organization. Are there any other questions that you would add to the list, based on your organization’s experience?