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. Keep your bylaws relevant.
The bylaws may contain any provision for managing the business and regulating the corporation's affairs that is not inconsistent with statutory law or the corporation's Articles of Incorporation. The bylaws generally cover the areas of the corporation's internal management.
Here are some examples of provisions that nonprofit organizations should avoid including in their bylaws. Organizational Policies and Procedures. Specifically Targeted Policies that Adversely Affect Future Boards. Provisions that Violate State Laws. Inconsistencies with the Articles of Incorporation.
Corporate bylaws are legally required in Washington State. Usually the board of directors will adopt initial bylaws at the first organizational meeting.
Bylaws can add additional qualifications as agreed upon by the current board members. 501(c)(3) public charities must have at least 3 board members.
Your bylaws are legally binding—so treat them as such. Failure to comply with your bylaws can result in issues ranging from organizational conflict to personal liability, the rejection or loss of tax-exempt status, and in some cases, lawsuits.
Bylaws are individual to an organization, yet they should include specific issues and processes: Name and location of organization. Statement of purpose, as aligned with IRS exempt purposes. Officers. Election. Role definition. Board members. Election. Roles. Structure. Size of board. Membership (categories, responsibilities)
Your bylaws are not an employee handbook or policy manual designed to run the day-to-day operations of your nonprofit organization. For example, employee absences, vacation policies, and no-smoking policies have no place in an organization's bylaws.
For non-profit organizations, bylaws are actually a legal document that the organization is responsible for upholding. For organizations that provide direct service, bylaws usually don't apply to the organization as a whole; instead, they might delineate the board's powers as opposed to those of the Director.