Nonprofit bylaws serve as the governing document for organizations, guiding decisions and answering questions like:
Because of their importance, it proves critical for nonprofits to take care and be thorough when drafting bylaws. Learn the key steps to writing nonprofit bylaws.
Nonprofit bylaws are the operational rules governing the activities and decisions of the board of directors in your nonprofit organization. They put guidelines in place regarding:
Bylaws come in the form of internal legal and binding documents. You don’t have to file yours with the state, but you may have to attest that you’ve adopted them. Moreover, the IRS may request you to submit a copy alongside your Form 1023 when applying for or incorporating the 501(c)(3) exemption .
Not only do nonprofit bylaws set out process guidelines and procedures to guide decision-making, they also help resolve disagreements and conflicts. Lastly, these crucial documents aid your organization’s transparency and keep board members accountable for supporting their organization’s mission.
Follow these steps to draft nonprofit bylaws.
Start by forming a bylaw committee, which will be responsible for drafting your organization’s bylaws. The committee drafts the bylaws, submits them to the board for approval, then revises as necessary.
After the organization approves and adopts the bylaws, the committee is responsible for distributing and enforcing the bylaws.
Next, you’ll need to review all state laws relevant to nonprofits to ensure your bylaws comply. You may ask neighboring nonprofits for examples of their bylaws to see how local laws are reflected.
The importance of thoroughness in your bylaw creation process cannot be overstated. As your primary guiding principles, the guidelines must be comprehensive enough to define all aspects of your organizational practices and decisions.
Creating bylaws isn’t a one-off process; bylaws require annual review and amending to keep up with new legislation and your organization’s changing needs. This practice also helps keep your officers familiar with the bylaws.
With a nonprofit board management solution like OnBoard, boards can draft their bylaws and store them digitally and securely. Multiple board members can collaborate on the living document, which can be referenced and revised annually.
OnBoard also supports effective board governance with the following features:
Download a free board meeting agenda template for a small glimpse of what OnBoard’s purpose-built software for nonprofits can do for your organization.
