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Wednesday, Apr 24, 2024

Arthur Rieman

Representing non profit agencies and organizations in Southern California is not as lucrative a law practice as working for a large firm. But as head of The Law Firm for Non-Profits, P.C. in Studio City, Arthur Rieman gets another sense of satisfaction from his work. “We like to think we are helping good people do good things,” said Rieman, who took over the firm in 1998. Not for profits contribute to nearly one-seventh of the national economy. In Los Angeles County alone there are some 40,000 non profit organizations and agencies, with large ones, such as the California Wellness Foundation, located in the San Fernando Valley. While attorneys in law firms may dabble in representing non profits, Rieman considers himself among the few doing it exclusively. The attraction of that field of law is that it is constantly changing, is heavily regulated and the activities of the groups are filtered through IRS and state rules and regulations. Most non-profits have a good handle on what they are supposed to do to comply with the rules and regulations but find it helpful to have someone available to answer questions and consult with, Rieman said. “The clients are much more fun to work with and much nicer,” said Rieman, who had been general counsel for a direct marketing firm before helming The Law Firm for Non-Profits. His duties for his clients are the transactions any other corporation would need getting the non profits started, handling land deals, creating special purpose entities, tax and employment issues, and dealing with government agencies. Rieman was the sole lawyer when four non-profit credit counseling agencies throughout the state merged into a single entity, BuyDesign Financial Solutions. In that merger, Rieman needed to get four separate boards all on the same page to make it work, said Peter Lake, president and CEO of BuyDesign. “He handled that kind of complexity well in an interpersonal sense,” Lake said. Focusing solely on non profits gives Rieman an authoritative understanding of legal situations, Lake said, adding that Rieman continues in an informal advisory role for BuyDesign. “He will spontaneously keep me informed of legal developments that impact our industry,” Lake said. Another area Rieman handles is that of accountability and governance issues facing non profit boards of directors. Takeover attempts, boards stacked with friends, and mishandling of funds are more common than one would think, Rieman said. “People get into not for profits for ego reasons and often ego is more powerful than dollars,” Rieman added. Coming from a background in transactional law, the move to representing non profits was not that difficult as the transactions are the same but governed by a separate set of corporate and tax law. So much can only be learned from books and each organization he works with is unique, Rieman said. “Most of the people I would consider experts in the field are really self taught,” Rieman said. “We often encounter unique situations that require us to explore the law and figure out how the new situation will apply.” Mark R. Madler

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