The following developments from the past month offer guidance on corporate law and governance law as they may be applied to nonprofit health care organizations:
EMERGING NONPROFIT CONTROVERSY -
Health system general counsel are well advised to monitor developments involving the scrutiny of governance and operations of the University of Louisville Foundation, the large fundraising affiliate of the University of Louisville.
On June 9, an independent investigative report on Foundation practices was released. The report identified, in substantial detail, information with respect to "excessive spending practices, unbudgeted expenses, unapproved actions, high executive compensation and unrecorded endowment losses." Other information related to substantial governance deficiencies and comingled financial/endowment accounts. More recent information alleged that Foundation officials (executives and board members) may have improperly invested their own money with companies in which the Foundation was already investing.
Please see full publication below for more information.
