Attorney General Oversight Over Nonprofit Health Systems: The Role of State Charity Officials

McDermott Health Podcast Channel

Nonprofit healthcare organizations and their governing boards are subject to the authority of the state attorney general, which has broad statutory and common law power with respect to its duty to preserve charitable assets. The attorney general is supported in this work by dedicated charity officials who work within what is normally referred to as the “charitable trust division” of the attorney general’s office. To help inform nonprofit health systems and their leaders on the role of the attorney general and its charity regulators, Michael Peregrine is joined by Leslie Friedlander, an Assistant Attorney General in the office of the Texas Attorney General. Leslie is currently the president of the National Association of State Charity Officials (NASCO), and offers a “refresher course” about state regulation of nonprofit organizations, and NASCO’s related educational role, including: An overview of the role of NASCO, its purposes, and the value of its educational materials. Charity officials’ interest in nonprofit board business practices. How state charity officials gather information that informs enforcement policies. Effective means of communication between the charitable sector and NASCO. Examples of what a state charity official might consider as “red flag activities” by a nonprofit and its board. Other divisions within the Attorney General’s office that may get involved with charitable trust decisions. NASCO’s priorities and policies for the coming year.