Agriculture Reference
In-Depth Information
This area outlines any insurance or other liability issues, as well as who is managing them as they relate to
the agreement and mishaps that may occur. An organization should never claim liability over something that
it has no control over. Before you go too far with the MOU process, it is good to make sure your would-be
partner has insurance or other liability coverage that they agree to provide. This includes your organization as
well.
DISCLAIMERS
This is an area where you can outline what you and your partner are
not
doing. For example, you may be
agreeing to use space, but the other organization is disclaiming that they will not make any improvements on
the space.
CONFLICT RESOLUTION
This section outlines the steps to be taken if something goes wrong and parties need to resolve a dispute.
Conflicts and the need to resolve them could develop around many things related to a partnership. Agreeing
to have regular meetings to discuss the health and progress of the project, and formalizing how to decide
when to go to mediation, or seek legal recourse on conflicts, are examples of possible scenarios.
MISCELLANEOUS
This final section often includes provisos for legalese such as how the agreement is binding, how it presides
over previous agreements, and other related legal language.
SIGNATURES
Partnering organizations may have bylaws indicating how many board members need to sign such an
agreement. Generally an executive director or another leader from each organization may sign an MOU.
Depending on your organization, your board may need to formally approve MOUs before they are
signed.
BOARDS AND OTHER LEADERSHIP TEAMS
If you apply for state or federal nonprofit status, you will need a board of directors. Most states require
at least a three-person board—president, treasurer, and secretary—but it varies, so do some research to
determine what your state requires.
As with most things related to the IRS, answers are rarely simple—and this is true for the question
of how big the board should be. In this topic's Resources section, you'll find IRS links that will provide
information on board size and responsibilities. Keep in mind that the point of a board is fiscal and or-
ganizational oversight as well as governance, and every organization's board setup and requirements
are tailored to the organization itself. Boards often start out small and grow over time as the needs of
the organization evolve. Regardless of the size or how long the board has been established, members
should be involved and interested in the activities of the organization to the extent of their ability. At
the very least, they should have oversight and buy-in on large decisions and financial matters. Board
members also have a personal legal liability to vouch for the fiscal management of the organization.
If you are a small garden organization, a board of three to five people should offer enough gov-
ernance to oversee and support your mission. The board members may or may not be involved in the
