Bylaws are an important part of every organization that are meant to guide the Board of Directors and assist with decision making. Since nonprofit Bylaws require specific disclosures, many organizations will engage an attorney to help draft their Bylaws.
Process for Writing Bylaws
- Research
- Be knowledgeable of the state’s regulations and local laws. Research similar organizations to ensure relevant information is included.
- Develop a draft
- Utilize the research gathered to develop a draft. Sections that should be included in the Bylaws of a nonprofit organization are listed below.
- Review the draft
- A qualified legal professional should review the draft to ensure that the Bylaws adhere to state and local laws, regulations, and restrictions. The Board of Directors should review the draft and vote to approve the Bylaws.
- Publish the bylaws
- Once the Board of Directors approves the Bylaws, they can be published and distributed to individuals as necessary.
Bylaws Sections for a Nonprofit Organization
- Name of the Organization
- Purpose – Nonprofit and specific
- Membership information
- Member Meetings
- Board of Directors’ responsibilities
- Officer duties
- Committees’ requirements and functions
- Staff responsibilities
- Conflict of interest and compensation
- Indemnification – General, expenses, and insurance
- Books and Records
- Amendments
- Adoption of Bylaws (signatures)
Nonprofit Bylaws are an important component to helping a nonprofit organization run smoothly, as they provide a guide for both employees and the Board of Directors. Each state has different rules and requirements that need to be taken into consideration when developing Bylaws for an organization to ensure relevant information is being included.
Please contact the Not-for-Profit Niche team at Gilliam Bell Moser LLP for further guidance.
FOR MORE INFORMATION
Joy Klenke, CPA
Senior Audit Manager
