By-laws are the primary legislative instrument of municipalities in Ontario, including the City of Toronto. City Council makes decisions by adopting or amending recommendations from its committees and City officials contained in reports and communications.
You not only have a duty to understand your bylaws, you are legally accountable for following them. This is not optional. A court of law will side with your bylaws in any dispute brought by another board member, an employee, volunteer or recipient of services who may have a grievance.
There are six areas in particular where ethical issues arise in the nonprofit sector: compensation; conflicts of interest; publications and solicitation; financial integrity; investment policies; and accountability and strategic management. Compensation.
Locate an attorney who is knowledgeable about nonprofit law in your state of organization. Ask the attorney to prepare a letter to the president, or the whole board, outlining the ways that they are neglecting their duty. The letter should describe the potential liability for your organization.
All nonprofit organizations need regulations that determine how they are governed. Bylaws are the legally binding rules that outline how the board of a nonprofit will operate. While they are unique to each organization, nonprofit bylaws generally have a similar structure and use.