How Pro Bono Lawyers Bolstered Nonprofits In Pandemic Times
Business and transactional lawyers navigated numerous new challenges.
The term “pro bono” may call to mind a nonprofit legal-aid office where individuals turn when they can’t afford a lawyer, but there is a transactional side.
Nonprofits themselves often need help with business matters, to keep their organizations healthy and best able to fulfill their missions.
During the COVID-19 pandemic, nonprofits have had to deal with novel situations in employment law and contract law, as well as navigate new government loan programs.
They may have been forced to dramatically change the way they connect with the communities they serve.
Whether a nonprofit is “providing childcare, senior services, or revitalizing economic development in the community, they need legal help for their programs and infrastructure,” said Elizabeth M. Guggenheimer, the executive director of Lawyers Alliance for New York, which provides transactional legal services for nonprofits working to improve the quality of life in New York City neighborhoods. Guggenheimer also serves on the faculty of the Practising Law Institute’s annual program, “Advising Nonprofit Organizations.”
Employment Law
When asked about the most common legal needs of nonprofits during the pandemic, Nancy Eberhardt, executive director of Pro Bono Partnership, responded, “Employment, employment, employment.”
“Many nonprofits had to shut down very quickly,” she explained. “Many had no plan for remote work. They didn’t have the technology. They didn’t have policies addressing it. Some had to lay off or furlough staff.”
Eberhardt’s organization — a nonprofit itself — provides free business and transactional legal help to other nonprofits serving underrepresented people in Connecticut, New Jersey, and suburban New York (outside New York City). She is also a faculty member for the PLI program, “Serving on a Nonprofit Board 2021: Practical and Ethical Considerations for Attorneys.”
Even though those early confusing times have passed, employment-related legal needs have persisted. Pro Bono Partnership has been working on “office opening policies, vaccinations issues, and a lot of employment policies such as updating handbooks,” Eberhardt said. “Employment law issues were a big concern for nonprofits and a big part of what’s kept us busy.”
A similar experience was reported by Guggenheimer. She said many nonprofits initially requested help with changing laws related to leave time and downsizing. More recently, they have sought guidance on “vaccination policies, including what an appropriate exemption would be on religious or medical grounds, the same questions a small business might have.”
Guggenheimer said many of these discrete questions can be handled in brief customized consultations. While her organization continues to provide long-term representation for nonprofits in complex legal matters, the number of virtual pro bono consultations increased during the pandemic because of client need — for example, a matter might be time sensitive — as well as volunteer interest. Attorneys have been so busy with their everyday work during the pandemic that brief consultations are a good way for Lawyers Alliance volunteers from law firms and corporations to keep giving back.
Changes in Service
Aside from helping nonprofits set up their employees to work from home, many had to figure out how to provide services remotely, Eberhardt said.
The issues attached to this can be as varied as nonprofits themselves.
For example, an educational after-school program or community arts nonprofit making the switch to virtual or hybrid programming, “might be hosting more curriculum or creative materials online, or now be collecting data electronically, so they need help updating their website policies,” Guggenheimer said.
“They also might need help understanding the relevant copyright and trademark laws. Plus, as nonprofits offered pandemic relief, including hunger prevention and telehealth services, Lawyers Alliance and pro bono attorneys reviewed the clients’ corporate documents to ensure they covered such activity.”
Government Programs
Nonprofits also needed help accessing government loans through the Paycheck Protection Program, a process that was “urgent and really confusing,” Eberhardt said. Volunteers from firms and companies — working with her organization — “advised over 100 nonprofits on their Paycheck Protection applications,” she added.
In addition, the U.S. Small Business Administration offered Shuttered Venue Operators Grants to cultural venues forced to close by the pandemic.
“We serve nonprofits such as tiny opera houses, community theaters, and museums that were eligible for these grants,” Eberhardt explained. “Our volunteers helped them fill out the application. No one else was helping them navigate the process. Most of our clients have no legal staff at all, so we serve as a sort of outside general counsel.”
Lawyers Alliance recruited dozens of pro bono attorneys to offer trainings and virtual consultations to nonprofits on SBA loans and loan forgiveness, added Guggenheimer.
Contracts
According to Eberhardt and Guggenheimer, matters related to contract law came up often during the pandemic.
“Many nonprofits had to cancel events but they had already entered contracts with venues, so they had to revise or cancel these contracts,” Eberhardt said.
Lawyers Alliance had a similar experience. At this point they’ve moved back toward the usual types of vendor, collaboration and service contracts, which isn’t to say the early experience hasn’t had its effect. “Now, they’re making sure contracts have contingencies in place addressing what happens if a particular service can’t be provided in the same way,” Guggenheimer said.
And of course, there were leases. Eberhardt said Pro Bono Partnership worked on a lot of renegotiations. “There’s not a provision in a lease for this kind of crisis. No exceptions for a worldwide pandemic. It was complicated.”
Guggenheimer characterized these as case-by-case matters. Usually a tenant “has a legal obligation to pay, but this doesn’t mean there can’t be a conversation,” she said. “What I think is important right now as organizations negotiate new leases is, to what extent are they building in protections in case their plans change?”
In fact, Guggenheimer thinks the effects of the pandemic will take a while to play out. Thanks to pandemic funding from the government and donors, “I don’t think we’ve yet seen the full financial consequence of the pandemic on nonprofits,” she said. “We might in a year or two, when they will need advice on strategic alliances, mergers, and alternative funding vehicles.”
She added that this kind of work is a great fit for corporate and transactional attorneys.
“They help with legal issues and strategy. They offer good judgment and help nonprofits evaluate the pros and cons of different alternatives.”
The needs are significant. Eberhardt noted that Pro Bono Partnership has seen an increase in inquiries to its Legal Resource Helpline. Since the start of the pandemic the organization has responded to 1,100 COVID-related questions from nonprofits.
Given these needs, pro bono work offers transactional attorneys a way to use their skills for the greater good.
“You don’t need to be in a courtroom,” Guggenheimer said. “You don’t need to be a litigator. It’s about being a good counselor. When you’re a transactional lawyer you’re making that organization strong so it can serve hundreds or thousands of people.”
To learn about PLI programs, pro bono memberships, and scholarships for qualified individuals and organizations, visit www.pli.edu/probono.
Elizabeth M. Bennett was a business reporter who moved into legal journalism when she covered the Delaware courts, a beat that inspired her to go to law school. After a few years as a practicing attorney in the Philadelphia region, she decamped to the Pacific Northwest and returned to freelance reporting and editing.