re: Restructuring a nonprofit corporation

I was in a senior leadership role for a very large national not for profit and we established a wholly owned subsidiary to create more focus and independence on unique part of the business that needed to act as more of a start-up. We did not do it because of risk, but we decided it was a more thoughtful approach to creating a successful adjacency to our traditional business model. That said, it did reduce our liability. To what extent, I’m not sure as we had our attorneys handle the details of the process. I do know that we were not a joint employer, which was a critical dimension of our risk management.