Nonprofit Law Explained: Compliance, Boards & Executive Pay Made Simple with Jacob Zerkle

Nonprofit law, board governance, and compliance challenges impact every organization. In this episode, May Harris talks with attorney Jacob Zerkie about nonprofit boards, DEI policies, executive pay, and legal risks.

Jacob Zerkie, senior tax associate at Michael Best & Friedrich, shares how he became a nonprofit attorney and what nonprofits should know when seeking legal guidance. He and host May Harris explore the unique issues nonprofit lawyers address,  from endowment restrictions to executive compensation, and why nonprofits should build relationships with specialized attorneys before issues arise.

What you will learn in this episode

✅ Why nonprofit law requires unique expertise beyond general corporate or tax law
✅ How endowment restrictions and DEI policies are evolving after recent court rulings
✅ Why executive compensation is a red flag for regulators and requires legal oversight
✅ How to find and vet the right nonprofit attorney for your organization

👉 If this conversation helps your leadership team, share it with your board, subscribe for more episodes, and leave us a review. Explore more tools here: Nonprofit Council Leadership Accelerator.

Key Timestamps

• 00:00 Why having an attorney on your nonprofit board is valuable but not enough

• 01:11 Introducing guest Jacob Zerkie and his career journey into nonprofit law

• 02:20 Networking, mentorship, and finding a path into nonprofit legal practice

• 04:03 Nonprofit law as a mix of corporate, tax, and mission-driven advising

• 06:04 Why advising nonprofits is rewarding: everyday impact in communities

• 07:11 COVID’s impact: dissolutions, mergers, and accessing restricted funds

• 08:03 Post-Supreme Court challenges: DEI policies and scholarship programs

• 10:16 When nonprofits need specialized legal counsel and how to find the right fit

• 12:01 Building relationships: social media, blogs, and first conversations with attorneys

• 13:11 “Nonprofit Office Wisdom” series: The Office sitcom as a lens for nonprofit lessons

• 15:22 Attorneys are also human: why personality fit matters in selecting counsel

• 16:28 Unique legal challenges for nonprofits: fundraising, tax exemption, endowments

• 17:37 Executive compensation and employment agreements as regulatory risks

• 18:29 Why early legal guidance prevents long-term problems for nonprofits

• 18:47 Closing reflections and resources

Four Key Takeaways

🔷 Nonprofit law is specialized. General corporate or tax attorneys may miss sector-specific compliance risks.
🔷 Funding and DEI policies are evolving. Recent court rulings make it critical to reassess endowments and diversity programs.
🔷 Executive compensation matters. Regulators closely scrutinize how nonprofits pay founders and leaders.
🔷 Choose your attorney wisely. Beyond expertise, fit and trust are essential for strong, ongoing counsel.

Resources

• Michael Best & Friedrich LLP – Jacob Zerkie’s firm

• For Profit Law Group - Website - https://www.fplglaw.com 

• Nonprofit Counsel - Website - https://www.nonprofitcounsel.com/ 

• Nonprofit Counsel - Linkedin - https://www.linkedin.com/company/nonprofit-counsel/
  
  

Guest Bio: Jacob Zerkie

Jacob Zerkie is a senior tax associate at Michael Best & Friedrich LLP, where he advises nonprofits including 501(c)(3), 501(c)(4), and 501(c)(6) organizations on governance, compliance, fundraising, and tax matters. With over a decade of experience, Jacob helps nonprofits navigate formation, operations, and complex issues like endowment restrictions and executive compensation. He also shares insights with the sector through his “Nonprofit Office Wisdom” LinkedIn series, applying lessons from The Office sitcom to real nonprofit challenges.

 

 

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