Bankruptcy is a means to an end... not a destination with Steven Solomon

This week on I 501(c) You, we are hearing from Steven Solomon, Managing Shareholder of GrayRobinson’s Miami office and Chair of the firm’s Bankruptcy Section. This is a unique episode because we get to learn all about nonprofit bankruptcy and how it can be used as a strategic vehicle. We hope this can provide your organization with a little information about another resource to potentially think about if your organization runs into some trouble. Bankruptcy is not for every organization, but as a board member, you have a fiduciary responsibility to explore all options if things are going awry.

Steven walks us through some of the reasons a nonprofit would file for bankruptcy, some of the factors they should consider when thinking about bankruptcy, and how a nonprofit organization can use bankruptcy as a strategic vehicle.

Some of the major takeaways from this episode are:

1. Bankruptcy is not a destination, it is a means to an end.
2. When going through bankruptcy as a nonprofit, communication to the public and your largest stakeholders is EXTREMELY important.
3. This is another great reason to have a diverse range of expertise on your board.

We hope this episode is as informative to you as it was to us. We learned so much about bankruptcy and how it can help or hurt a nonprofit organization.

Timestamps:

00:43 - Interview starts

01:38 - Reasons why a nonprofit would think about bankruptcy

03:55 - Does the size of the organization matter?

04:20 - Bankruptcy is not a destination, it is a means to an end

07:30 - Examples of strategic bankruptcies

12:40 - When would a nonprofit organization consult with a bankruptcy lawyer

16:30 - Types of bankruptcy

18:00 - Bankruptcy code of assets for nonprofit organization

19:50 - Chapter 11 bankruptcy for a nonprofit organization

21:45 - Who calls you, board chair/executive director?

23:20 - Bankruptcy as a strategic vehicle

27:00 - One of the first questions Steven asks nonprofit organizations considering bankruptcy

34:20 - Final thoughts

37:49 - Recapping with Read

Join us every week as we release a new podcast with information about how you can be the best board member and provide great service to your organization.

Visit us at: www.thecorleycompany.com