Nonprofit Accounting Basics
Bylaws
Bylaws are the legally binding rules that outline how the board of a nonprofit will operate. While they are unique to each organization, bylaws generally have a similar structure and use. Because the amendment of this document usually requires a super-majority vote of the board or in a formal membership organization the members may need to approve changes to the bylaws, it is not practical to include all detailed guidelines in this document. A separate set of policies and procedures will clarify further how decisions are made.
All bylaws should address at least the following issues
- Name and location of organization
- Statement of purpose
- Election, roles, and terms of board members and officers
- Membership issues (categories, responsibilities)
- Meeting guidelines (frequency, format and quorum)
- Board structure (size, standing committees, if any)
- Compensation and indemnification of board members
- Role of chief executive
- Amendment of bylaws
- Dissolution of the organization