{"id":25001,"date":"2022-12-08T06:00:09","date_gmt":"2022-12-08T14:00:09","guid":{"rendered":"https:\/\/pro-migration.local\/?p=25001"},"modified":"2025-06-10T11:35:50","modified_gmt":"2025-06-10T18:35:50","slug":"nonprofit-bylaws","status":"publish","type":"post","link":"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/c\/blog\/nonprofit-bylaws\/","title":{"rendered":"Nonprofit Bylaws: A Beginner&#8217;s Complete Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Everyone has to play by the rules, including nonprofits. Nonprofit bylaws establish procedures, structures, requirements, and guidelines for how it operates. In other words, it keeps everyone accountable for their actions and prevents conflict and confusion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Avoid the temptation to copy and paste old sample bylaws from the internet. While these can provide a good starting point, it\u2019s better to tailor your laws to your nonprofit organization. After all, we don\u2019t want your nonprofit bylaws to end up like \u201cthe code\u201d in <\/span><i><span style=\"font-weight: 400;\">Pirates of the Caribbean\u2014<\/span><\/i><span style=\"font-weight: 400;\">loose, misinterpreted, and broken more often than not.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ll help you escape mutiny and disagreement by walking you through everything you need to know about nonprofit bylaws as this is a facet of your overall <a href=\"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/blog\/writing-nonprofit-business-plan\/\">nonprofit business plan<\/a>. Below, we\u2019ll get into what these are, why these matter, and how to write your own.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Are Nonprofit Bylaws?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Nonprofit bylaws (aka bylaws and articles of organization) explain how your organization operates. These rules explain the election process for <\/span><a href=\"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/blog\/who-you-need-on-nonprofit-board\/\"><span style=\"font-weight: 400;\">board members<\/span><\/a><span style=\"font-weight: 400;\">, board meeting guidelines and frequency, compensation disclosures, indemnity clauses, and more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Simply put, it\u2019s an operating manual for running your nonprofit.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While your bylaws don\u2019t have to be publicly accessible, many organizations share them to increase <\/span><a href=\"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/blog\/nonprofit-transparency\/\"><span style=\"font-weight: 400;\">nonprofit transparency<\/span><\/a><span style=\"font-weight: 400;\"> and trust. Donors, constituents, and supporters like to know what happens behind the scenes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The nonprofit board of directors is responsible for compiling your nonprofit\u2019s bylaws. Ideally, it did this thoroughly <\/span><a href=\"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/blog\/how-to-start-a-nonprofit\/\"><span style=\"font-weight: 400;\">when forming the organization<\/span><\/a><span style=\"font-weight: 400;\">. If not, don\u2019t panic\u2014you can amend your bylaws at any time, although we recommend reviewing and making edits periodically.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then, there\u2019s the law.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Federal law <\/span><a href=\"https:\/\/www.irs.gov\/charities-non-profits\/other-non-profits\/exempt-organization-bylaws\"><span style=\"font-weight: 400;\">doesn\u2019t require any specific language<\/span><\/a><span style=\"font-weight: 400;\"> in bylaws, but some states have specific requirements. For example, New York has audit requirements, restrictions on who can be the board chairperson, and nonnegotiable procedures for managing conflicts of interest.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other states have more lenient requirements. For example, Colorado doesn\u2019t require nonprofits to organize bylaws. However, if nonprofits don\u2019t establish rules, the state will subject the nonprofit to general ruling and organization laws.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why Do Nonprofits Have Bylaws?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Nonprofit bylaws are essential to your formation and longevity. Without these preestablished rules, there\u2019s no guidance for how individuals should conduct themselves. There would also be no way to hold the organization or leaders accountable for their actions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are a handful of reasons nonprofits <\/span><i><span style=\"font-weight: 400;\">need<\/span><\/i><span style=\"font-weight: 400;\"> bylaws:<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Legal reasons: <\/b><span style=\"font-weight: 400;\">Bylaws are a requirement in some states.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Decision-making: <\/b><span style=\"font-weight: 400;\">Bylaws define <\/span><a href=\"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/blog\/3-steps-to-make-your-nonprofit-more-data-driven\/\"><span style=\"font-weight: 400;\">how your organization makes decisions<\/span><\/a><span style=\"font-weight: 400;\">, such as holding meetings, fulfilling terms of office, and electing board members.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Conflict prevention: <\/b><span style=\"font-weight: 400;\">Bylaws present the rules clearly, eliminating confusion or individual disagreements.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Protection: <\/b><span style=\"font-weight: 400;\">Bylaws limit personal liability of board members, protecting them from financial loss or harm.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Common Sections to Include in Your Nonprofit Bylaws<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There\u2019s no one-template-fits-all way to write your nonprofit bylaws. However, aside from states having requirements for what you need to include, you\u2019re free to add further clarification in other areas beyond that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are a few common sections to get you started:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Name of Organization<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Start with your nonprofit\u2019s name and purpose. Your purpose will identify whether you\u2019re a charity, religious group, research organization, or educational institution. Then, broadly state your nonprofit\u2019s objectives and the activities it\u2019ll use to operate (e.g., fundraising, volunteer events, and impact activities).<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Membership<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Outline the details around membership in your nonprofit. Specifics could include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/blog\/who-you-need-on-nonprofit-board\/\"><span style=\"font-weight: 400;\">Eligibility for joining the board<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Required fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Procedure for electing board members<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Voting rights for members<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Approval process for changes to bylaw amendment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Criteria for membership termination<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Meeting Guidelines<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Detail how many board members need to be present for a quorum. However, some states have required minimums, so ensure you follow the state guidance before establishing your rules.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then, establish how often you\u2019ll meet. This might be a minimum of once a year, but check to see if your state requires more. You\u2019ll also need to define when the board of directors, chairperson, or executive committee can call a special meeting for emergencies or anything that can\u2019t wait until the next meeting.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Board Structure<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Deciding <\/span><a href=\"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/blog\/who-you-need-on-nonprofit-board\/\"><span style=\"font-weight: 400;\">who you need on your nonprofit board<\/span><\/a><span style=\"font-weight: 400;\"> is essential to the success of your nonprofit. Solidify<\/span><span style=\"font-weight: 400;\"> how many board members you\u2019ll allow, including a minimum and a maximum. Again, some states have requirements for board structure, so follow the state regulations when designing your bylaws.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Officers<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Define the officer roles of your board of directors. Roles might include president, vice president, secretary, and treasurer. Then, outline the responsibilities for each role. For example, your president might preside over all meetings while your vice president takes over in the president\u2019s absence.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Indemnification of Board Members<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Indemnification refers to how you\u2019ll protect your board members and members from financial harm due to their role. For example, your nonprofit bylaws outline might include how you\u2019ll pay legal fees if they\u2019re involved in a lawsuit.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Books and Records<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">State how you\u2019ll keep financial books and records of your meetings. This includes detailing where you\u2019ll store these and how members or the public can access them.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Amendments<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Record how you\u2019ll make amendments to your nonprofit\u2019s bylaws. Then, add each bylaw amendment to this section to record every change you make and its impact.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Dissolution<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Add a dissolution clause that states how you\u2019ll distribute your assets if the nonprofit organization dissolves.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">8 Tips &amp; Best Practices for Writing Your Nonprofit Bylaws<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">1. Get Legal Help<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Bylaws are legal documents, and there are plenty of nuances and state-specific requirements that make writing them a bit tricky. We recommend working with a professional to draft your nonprofit bylaws. They\u2019ll know the state restrictions and help you avoid getting into legal trouble.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. Keep It Simple (Think Guidelines Rather Than Strict Rules)<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Strict bylaws can make it hard to stay in accordance. Instead, write bylaws that operate as guidelines. For example, you might state that there\u2019ll be a minimum of 10 board members and a maximum of 30 rather than requiring exactly 15. Or you might suggest an annual board meeting rather than a regular meeting on the first Tuesday of every new year.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Personalize Bylaws to Your Nonprofit<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Many nonprofits will have a lot in common regarding organizing and operating. However, every organization is unique. So customize your bylaws to your nonprofit\u2019s special circumstances, purpose, and members.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. Make Your Bylaws Public<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The law doesn\u2019t require nonprofit organizations to make their bylaws public, but we believe it provides accountability and transparency. When you share them with your donors and supporters on public record, you give them a behind-the-scenes look at how and why you make decisions.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">5. Pay Attention to Semantics (These Matter)<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The words \u201cshall\u201d and \u201cmay\u201d often get confusingly tossed around in bylaws, but these aren\u2019t interchangeable. Shall means mandatory, while may means an option. For example, if your treasurer <\/span><i><span style=\"font-weight: 400;\">shall<\/span><\/i><span style=\"font-weight: 400;\"> establish the budget, they\u2019re the only ones that can do it. However, if your treasurer <\/span><i><span style=\"font-weight: 400;\">may<\/span><\/i><span style=\"font-weight: 400;\"> establish the budgets, they might do so with permission from the board.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">6. Be Realistic<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Be careful not to overcommit your board members. For example, don\u2019t require a monthly meeting if you know it\u2019ll be an unnecessary burden. The same goes for demanding an unrealistic quorum if you know you\u2019re unlikely to get that many voting members present.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">7. Review and Update Regularly<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your bylaws should be living, breathing documents\u2014not like the Constitution of the United States. That includes revisiting your laws every couple of years and revising what\u2019s not working. For example, consider changing your laws to require quarterly meetings if you struggle to have monthly meetings.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">8. Train Board Members<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Bylaws are only good when accessible and implemented. So train your board members on all the items outlined in the document. You may even consider making it a regular part of an annual meeting to review essential bylaws together and answer questions.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Build Better Giving Experiences With Classy<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Creating bylaws for your nonprofit can be tricky, but managing your donations doesn\u2019t have to be. Classy makes it easy to build donation pages, process payments, host virtual events, and raise more money for your nonprofit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our all-in-one fundraising platform lets you create high-performing campaigns, analyze metrics, and manage your supporters from one piece of software. It does all the nitty-gritty, time-consuming work for you to focus on what matters most: making an impact.<\/span><\/p>\n<p><a href=\"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/fundraising-demo\/\"><span style=\"font-weight: 400;\">Request a demo<\/span><\/a><span style=\"font-weight: 400;\"> to get a walk-through of how Classy can transform the fundraising experience at your nonprofit.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn everything you need to know about nonprofit laws, including what these are, why they matter, and tips and best practices for writing your own.<\/p>\n","protected":false},"author":130,"featured_media":25085,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[292],"tags":[],"class_list":["post-25001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nonprofit-development"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.5 (Yoast SEO v25.3) - 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