Five Steps to Writing Nonprofit Organization Bylaws

Malik Sharrieff reports:

"Bylaws are the rules of operation for a nonprofit organization’s board of directors. These operational rules play a pivotal role in how board members make business decisions and set the direction for internal divisions and the entity as a whole. Usually, bylaws are kept brief, with intent to outline the parameters in which organizational decisions will be made. Since these documents are legal and binding, a nonprofit board of directors can find itself significantly restricted by bylaws that are too rigid, as the process for changing bylaws after they are established can be involved and tedious...Research several local examples of bylaws; since the creation of organizational bylaws are strictly regulated by the states in which your nonprofit will be based, be certain that you benchmark, or copy the parts that are applicable, from a successful nonprofit within your state. Select an entity with a purpose and scope similar to your entity...Research several local examples of bylaws; since the creation of organizational bylaws [is] strictly regulated by the states in which your nonprofit will be based, be certain that you benchmark, or copy the parts that are applicable, from a successful nonprofit within your state. Select an entity with a purpose and scope similar to your entity...of board members, the governance of financial accounts and records, and a defined method of amending the bylaws in the future...Secure the services of an attorney with experience in establishing the organizational structure of nonprofits. Have the attorney review your draft for content, language, and length. Expect to make significant edits before your final draft...Present your final draft to the full board of directors for their review...Publish and circulate the bylaws to all relevant stakeholders (that is, any relevant party with an interest in the organization), board members, business leaders, and stockholders. You might also consider publishing the bylaws to the organizational website...Because of the tax-exempt status of most nonprofit entities, the government strictly regulates how they operate. Every state will provide specific direction on the minimum requirements for bylaw writing. Refer to these state-issued guidelines to ensure compliance."