Non-Profit Social Media Mistakes That Can Create Legal Problems

Non-Profit Social Media Mistakes That Can Create Legal Problems

Social media has become one of the most effective ways for charities and non-profit organizations to connect with donors, volunteers, members, and the communities they serve. Many organizations rely on Facebook, Instagram, LinkedIn, TikTok, or other platforms to promote events, share success stories, and advocate for important causes. In many cases, these accounts are managed by staff members or volunteers who are passionate about the organization’s mission but may not have formal training in communications or legal compliance.

While social media can strengthen community engagement, it also creates legal risks that are easy to overlook. A single post can raise issues involving defamation, copyright, privacy, or governance. Having a thoughtful social media policy can help non-profits in BC reduce these risks while continuing to communicate effectively with the public and meet their broader charity law obligations.

Understanding the Legal Risks of Social Media

Many non-profits use social media to advocate for causes that matter to their communities. Advocacy itself is not the problem, but organizations should be careful about making statements that could damage another person’s or organization’s reputation. The safest approach is to avoid making allegations about businesses, public officials, former employees, or competing organizations altogether. Well-intentioned posts can expose a charity to defamation claims if they contain false or misleading statements. It’s worth understanding that the truth is only a defence to a defamation claim, not a shield against being sued in the first place. Even a statement that is accurate can lead to a defamation claim which means time, legal cost, and reputational strain regardless of the outcome. Not only is there legal exposure, but this kind of posting tends to be negative in tone and may reflect poorly on a non-profit organization.

Defamation risk can also arise through comments made by volunteers or board members who appear to be speaking on behalf of the organization. Responding emotionally during a public disagreement or sharing unverified information may create legal exposure that extends beyond the individual who made the post.

Privacy is another area that deserves careful attention. Many charities work with children, seniors, vulnerable individuals, or people receiving confidential services. Sharing photographs, videos, personal stories, or identifying information without appropriate permission can create privacy concerns and damage the trust that donors and clients place in the organization.

Privacy law requires organizations to think carefully about what personal information is collected, shared, and retained. Before posting photographs from an event or highlighting a client’s story, charities should ensure they have obtained appropriate consent and understand any applicable privacy obligations. Even where consent has been obtained, organizations should consider whether sharing certain information is necessary and appropriate.

Copyright is another commonly overlooked issue. It is easy to find images, music, videos, and graphics online, but that does not mean they are free to use. Copyright issues can arise when volunteers download photographs from the internet, use music in promotional videos, or repost graphics without permission. Being a charitable organization does not provide an exemption from copyright laws.

Why Governance Matters on Social Media

Many legal issues involving social media are not caused by the platforms themselves but by a lack of internal governance. Organizations often discover that multiple volunteers know the passwords to their accounts, former board members still have administrator access, or no one knows who owns the organization’s social media profiles.

This creates unnecessary risk. Access should be limited to authorized individuals, and ownership of every account should remain with the organization rather than a personal email address belonging to a volunteer or employee. Clear governance procedures are also an important part of corporate law compliance for non-profit organizations.

Charities should also establish clear expectations around who may post on behalf of the organization and what approval process should be followed for sensitive content. Advocacy campaigns, public statements, fundraising appeals, and responses to controversial issues often benefit from additional review before they are published.

A nonprofit social media policy in BC should address acceptable content, privacy expectations, copyright compliance, account security, password management, comment moderation, and procedures for responding to complaints or media inquiries. Providing volunteers and staff with practical guidance helps create consistency and reduces the likelihood of avoidable mistakes.

Responding When Something Goes Wrong

Even organizations with strong policies occasionally make mistakes. A photo may be posted without proper permission, inaccurate information may be shared, or a volunteer may publish content that does not reflect the charity’s values or legal obligations. How the organization responds can significantly affect the outcome.

The priority is to assess the situation promptly. Depending on the circumstances, it may be appropriate to remove or correct the content, preserve records of what was posted, and determine whether anyone has been affected. If personal information has been disclosed or reputational harm may have occurred, the board should understand the full picture before deciding how to respond publicly.

Organizations should avoid reacting defensively or engaging in public arguments online. A measured, professional response often helps reduce further harm while allowing the charity to investigate the issue carefully. Internal documentation should record what occurred, how decisions were made, and any corrective steps taken.

After resolving the immediate issue, charities should review whether existing policies and training are sufficient. Many social media problems can be prevented by updating internal procedures, providing additional volunteer training, and regularly reviewing account access and approval processes.

At L. Johnson Law Group, we advise charities and non-profit organizations throughout British Columbia on governance, privacy, intellectual property, and risk management. If you need assistance, you can contact L. Johnson Law Group to discuss your organization’s legal concerns.

Frequently Asked Questions

1. Does every non-profit need a social media policy?

While not legally required, a written social media policy is a valuable governance tool. It helps establish expectations for staff, volunteers, and board members while reducing legal and reputational risks.

2. Can a charity be sued for a defamatory social media post?

Yes. If a post contains false statements that harm the reputation of an individual or organization, the charity could potentially face legal consequences, particularly if the content was published on the organization’s behalf.

3. Can our organization use photos found online in social media posts?

Generally, no. Most images, graphics, and videos found online are protected by copyright. Charities should use content they own, have licensed, or have explicit permission to use.

4. Do we need permission before posting photos of volunteers or event attendees?

In many situations, yes. Obtaining appropriate consent before sharing identifiable photographs or personal stories is good practice and may help your organization comply with applicable privacy obligations.

5. Who should own a charity’s social media accounts?

The organization itself should own its social media accounts. Administrative access should be tied to organizational email addresses wherever possible, and access should be reviewed whenever volunteers or staff leave.

6. What should we do if an inappropriate social media post is published?

Act promptly by assessing the situation, preserving relevant records, and determining whether the post should be removed or corrected. If the issue involves privacy, defamation, or other legal concerns, seeking legal advice early can help your organization respond appropriately.

Legal Steps to Incorporate a Non-Profit Organization in British Columbia

Starting a non-profit organization is an exciting step. Whether your goal is to support a local community, advance education, promote the arts, or provide charitable services, incorporating your organization creates a legal foundation that can help it grow and operate effectively. We often meet individuals who are passionate about a cause but are unsure where to begin or what legal requirements they need to meet before launching their organization.

Incorporating a non-profit in British Columbia involves more than filing paperwork. It requires thoughtful planning, a clear governance structure, and an understanding of the legal responsibilities that come with operating a society. Taking the right steps from the beginning can help avoid costly issues later and position your organization for long-term success.

Legal Steps to Incorporate a Non-Profit Organization in British Columbia

Understanding the Incorporation Process

In British Columbia, most non-profit organizations are incorporated under the Societies Act. Incorporation creates a separate legal entity, meaning the society can own property, enter into contracts, and continue operating independently of its members or directors. This structure may also provide greater credibility when seeking grants, donations, or community partnerships.

One of the first steps is choosing an appropriate name for the organization. The proposed name must be approved before incorporation and should clearly distinguish the society from existing organizations. It is also worth considering whether the name reflects your mission and whether trademark protection may be appropriate.

The organization must also establish its purposes. These explain why the society exists and guide its activities. They should be carefully drafted because they influence how the organization operates and, if charitable status is being considered in the future, they will be reviewed by the Canada Revenue Agency.

Another important requirement is preparing the society’s bylaws. These establish how the organization will be governed, including how directors are elected, how meetings are conducted, how members vote, and how important decisions are made. While the Societies Act provides default rules, well-drafted bylaws help prevent misunderstandings and provide clear guidance as the organization evolves.

Incorporation also requires appointing the initial directors. Directors play an important governance role and have legal duties to act honestly, in good faith, and in the best interests of the society. Choosing individuals who understand these responsibilities helps create a strong foundation from the outset.

Common Mistakes New Non-Profits Can Avoid

Many new organizations focus primarily on their mission and assume the legal structure can be addressed later. While enthusiasm is important, overlooking governance at the beginning can create challenges that become more difficult to correct over time.

One common mistake is using generic incorporation documents or bylaws without considering the organization’s specific needs. Every non-profit operates differently, and governance documents should reflect how the organization intends to function. Provisions that work well for one society may not be appropriate for another.

Another issue arises when founders confuse incorporation with charitable registration. Incorporating a society in British Columbia does not automatically make it a registered charity. Charity law involves separate legal considerations, and charitable status is a separate application process administered by the Canada Revenue Agency, with its own eligibility requirements and ongoing reporting obligations. Organizations should understand this distinction clearly before they begin fundraising or try to issue donation receipts.

Governance responsibilities are another area that is often underestimated. Directors are responsible for overseeing the organization’s affairs, ensuring compliance with applicable law, maintaining proper records, exercising reasonable care, diligence and skill, and acting in the best interests of the society. Maintaining accurate corporate records and meeting annual filing obligations is an essential part of staying in good standing and avoiding dissolution.

We also encourage organizations to think ahead about contracts, privacy, volunteer management, and intellectual property. While these issues may not feel urgent during incorporation, addressing them early often prevents problems as programs expand and new partnerships are formed.

Read More: Protecting Your Non-Profit Intellectual Property, Brand and Assets in BC

Building a Strong Foundation for the Future

Incorporating a non-profit is more than creating a legal entity. It is an opportunity to establish governance practices that support accountability, transparency, and sustainable growth. Understanding how corporate law applies to your organization can also help ensure that its legal and governance requirements are properly addressed. A well-structured organization is better positioned to attract qualified board members, secure funding, and earn the confidence of donors, volunteers, and community partners.

As your organization develops, your legal needs will continue to evolve. Board composition may change, bylaws may require updates, and new legal considerations may arise as programs expand or charitable status is pursued. Beginning with a solid legal framework makes it much easier to adapt to those changes over time.

We believe every organization deserves a strong start. Careful planning at the incorporation stage can help reduce future risks and allow your board to focus on advancing its mission rather than resolving avoidable governance issues.

At L. Johnson Law Group, we work with charities and non-profit organizations throughout British Columbia to guide them through the incorporation process and establish practical governance structures that support long-term success. If you are considering incorporating a non-profit or need guidance on the legal requirements involved, our team is here to help. Contact L. Johnson Law Group today to discuss your non-profit incorporation needs and take the first step toward building a strong legal foundation for your organization.

Why Surrey Businesses Need a Solid Shareholder Agreement

Solid Shareholder Agreement

The Backbone of a Successful Business Relationship

If you own a business in Surrey or elsewhere in BC and have one or more business partners, a shareholder agreement is one of the most important legal documents you can have. An effective shareholder agreement can set clear expectations, protect the parties involved, and help prevent costly disputes.

Many business owners overlook the need for a shareholder agreement, assuming that mutual trust and a handshake are enough. However, as businesses grow, circumstances change—disagreements, financial issues, and unforeseen events can arise. A well-drafted shareholder agreement can help your business remain stable, even in challenging situations.

What Is a Shareholder Agreement?

A shareholder agreement is a contract between a company’s shareholders that outlines rights, responsibilities, and procedures for handling various business situations. It provides a framework for decision-making, ownership changes, and conflict resolution.

Why Every Surrey Business Needs a Shareholder Agreement

1. Preventing Disputes and Misunderstandings

Business relationships often start with positive dynamics, but disagreements can emerge over time. A shareholder agreement can establish clear rules on issues like decision-making, profit distribution, and roles within the company, helping to avoid conflicts before they arise.

2. Protecting Ownership Interests

Without a shareholder agreement, ownership transitions can create unnecessary uncertainty and complexity. What happens if a shareholder wants to sell their shares? Or if one unexpectedly passes away? A solid agreement defines how ownership changes should be handled, enhancing fairness and stability.

3. Clarifying Financial Responsibilities

Business operations involve financial commitments—whether it’s funding expansion, handling losses, or reinvesting profits. A shareholder agreement should outline who contributes what and how financial decisions are made, strengthening transparency and accountability.

4. Supporting Business Continuity

If a shareholder leaves the company due to retirement, disability, or personal reasons, what happens next? Without a structured exit strategy, the remaining shareholders may face uncertainty. A well-prepared agreement supports keeping the business running smoothly, even when ownership changes.

5. Strengthening Investor Confidence

Potential investors and lenders want to see a well-organized business structure. A shareholder agreement demonstrates professionalism and long-term planning, making your company more attractive to outside investors.

Key Elements to Include in a Shareholder Agreement

While every business is unique, an effective shareholder agreement usually covers:
  • Roles & Responsibilities – What are each shareholder’s rights and duties?

  • Control of the Company – What are each shareholder’s rights to control the management of the company, if any?

  • Decision-Making Process – How are major business decisions approved?

  • Ownership & Financing – What are the current shareholder contributions? How will the business be financed?

  • Profit Distribution – How are profits divided among shareholders?

  • Restrictions on Share Transfers – How and to whom may shares be transferred?

  • Exit Strategies – What happens if a shareholder dies or wants to leave?

  • Family Property – What happens if a shareholder has a marital breakdown and the spouse claims an interest in the company?

  • Dispute Resolution – How are conflicts handled without harming the business?

What Happens Without a Shareholder Agreement?

Without a shareholder agreement, businesses can face:
  • Costly legal disputes over ownership, rights, and responsibilities.

  • Unclear succession planning, leading to instability.

  • Difficulty selling shares, causing financial roadblocks.

  • Lack of protection if a shareholder unexpectedly leaves.

Simply put, not having a shareholder agreement puts your business at risk.

When Should You Create a Shareholder Agreement?

The best time to create a shareholder agreement is at the start of your business. However, if your business is already operating without one, it’s never too late to put one in place. Updating your agreement as your business grows is also crucial.

Get Expert Guidance from L Johnson Law

Creating a strong shareholder agreement requires legal expertise to ensure it fully protects your business interests. At L. Johnson Law, we help Surrey business owners draft, review, and update shareholder agreements tailored to their unique needs. In our experience, implementing a shareholder agreement can save shareholders a significant amount of money due to the potentially high cost of litigation.

Whether you’re starting a new company, bringing on shareholders, or looking to secure your business for the future, we’re here to help.

Contact L Johnson Law today to protect your business with a solid shareholder agreement.

Business Succession Planning: Preparing a Smooth Transition

Business Succession Planning


Why Business Succession Planning Matters

If you’re a business owner in Surrey or elsewhere in BC, you’ve likely spent years—maybe even decades—building your company. But have you considered what will happen to your business when you retire, step down, or face unexpected circumstances? Business succession planning aims to ensure that your company continues to thrive, even when leadership changes.

A well-structured plan helps avoid financial instability, legal challenges, and internal conflicts. Whether you’re passing the business to a family member, selling it, or transferring leadership to key employees, having a plan in place facilitates a seamless transition.

Key Benefits of Succession Planning

1. Strengthening Business Continuity

Without a solid plan, a sudden leadership change can disrupt operations, impact employee morale, and affect customer confidence. A clear roadmap minimizes risks and helps the business continue running smoothly.

2. Maximizing Business Value

A well-thought-out succession strategy enhances the value of your business. Investors, potential buyers, or successors will be more confident in a company with a structured transition plan, making it easier to secure a fair valuation.

3. Reducing Legal Complications

Without a succession plan, legal disputes among partners, shareholders, or family members are more likely to arise. Clear documentation outlining ownership transfer, roles, and financial arrangements prevents unnecessary conflicts, delay, and expense.

4. Financial Security for You and Your Family

For many business owners, their company is a major financial asset. Proper succession planning helps secure your retirement and your family’s financial stability after you step away.

Steps to a Successful Business Succession Plan

While every business is unique, a few key steps can help create a strong succession plan:

1. Identify Your Goals

Ask yourself:

– Do you want to keep the business in the family?

– Are you considering selling it to an external buyer?

– Would you prefer an internal transition to key employees or partners?

Having clear goals will guide the rest of your planning process.

2. Choose the Right Successor

If you’re passing the business to a family member or employee, assess their readiness and capabilities. If selling, explore potential buyers early to get the best deal.

3. Plan for Leadership Transition

Leadership changes require careful preparation. Consider providing training or mentorship for your successor to ensure they understand the business’s operations and culture.

4. Address Financial and Tax Implications

A transition plan should include financial considerations such as:
– Business valuation
– Tax planning strategies
– Buy-sell agreements
– Insurance policies to cover unexpected events

5. Update Legal Documentation

Review and update key legal documents, such as:
Shareholder agreements
– Partnership contracts
– Wills and estate plans
– Power of attorney documents
– Trust deeds

Legal professionals can ensure your plan is legally sound and aligns with your long-term business objectives.

Read More: Practical Tips for Business Owners Negotiating Commercial Leases in Surrey

When to Start Planning?

The best time to start succession planning is now. Even if you don’t plan to retire or step away soon, an unexpected event—such as illness or market shifts—can make an unplanned transition necessary. Having a strategy in place helps ensure your business remains stable in any situation.

Get Professional Guidance from L Johnson Law

Business succession planning is a complex process that requires careful legal and financial consideration. Working with an experienced lawyer facilitates a smooth transition aligned with your goals.

At L. Johnson Law, we help business owners in Surrey, BC, develop customized succession plans that protect their legacy. Whether you’re planning for retirement, a sale, or internal leadership changes, we’ll guide you every step of the way.

Contact L Johnson Law today to start planning your business’s future!