Questions Your Board Should Ask When Entering Into a Contract

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?

About Hillary Beehler

I'm the Organization and Member Services Director for Washington Youth Soccer, the US Youth Soccer charter association for the State of Washington. WA Youth Soccer serves over 125,000 registered players across all levels of play, from Under 5 to Under 19.
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