All Things Governance: Bylaws, Part 2

Like any good governing body, you need rules and regulations. That’s what the bylaws of your organization provide. They should align with the overall goals of your organization and give a framework for operation (especially to make sure everything is legal). 

Requirements of bylaws vary state by state and by nonprofit type, so make sure you know your states and nonprofits regulations before diving in. But there are some general elements that should be in almost every organizations bylaws. 

1. Name and Purpose 

Include the Legal Name of the organization (you want to make sure this matches everywhere) and your mission statement. 

2. Membership (not all nonprofits have members) 

Go over what defines a member, what rights and responsibilities they have, and any procedures members must follow. 

3. Board of Directors 

This should cover how many directors, term limits and re-elections, duties, how they are selected and removed, meeting cadence, and if they receive compensation.  

4. Officers 

Include all officer titles and their duties. As well as how they are elected, their terms, and removal process. 

5. Committees 

Spell out all standing and ad hoc committees. Additionally, provide how committees are formed and what authority they have.  

6. Meetings 

This should cover all meeting types, rules for calling meetings, quorum requirements, and decision-making rules.  

7. Voting 

Go over who is allowed to vote, how many votes are required to pass a decision, and any remote voting policies.  

8. Conflict of Interest Policy 

Define what constitutes a conflict and how it must be disclosed and handled. 

9. Fiscal Policies 

Define your fiscal year and flesh out, budget approvals, audits, and financial oversight. 

10. Amendments to Bylaws 

This one is pretty straight forward. Cover how to amend the bylaws. 

11. Indemnification and Liability 

Go over whether board members and officers are indemnified from certain liabilities. 

12. Dissolution Clause 

Answer the question, what happens to assets if the nonprofit dissolves? 

These elements will give you a strong foundation for your bylaws and organization. You won’t need to play guessing games and waste time on procedural questions. They’re all fleshed out and written down. So your time can go towards what really matters – your mission.  

Take Action  

Sign up for my course on how to increase your board’s engagement. We’ll cover more specifically what to include in your bylaws to get the most our of your board. As well as diving into: What board engagement really means; Building culture and expectations; Igniting purpose and ownership; Creating accountability that works; Tools, templates, and techniques to sustain momentum. 

Learn more and sign up for The Board Engagement Accelerator here!