Bylaws Checklist and Checkup

Bylaws Sample - Bylaws Checklist and Checkup

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There's a great deal of organizational introspection going on right now. Yesterday, I had that conversation with a nonprofit administrative who discussed the drop in revenue due to the economy. How many of those conversations have I had in the last few months?

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Bylaws Sample

While many organizations are examining their revenues, staffing and how the society could run better, it might also be a good time to witness the Bylaws. Are your organization's Bylaws good sufficient to easily serve the organization? Or are you creating a new society and you're wondering what needs to be in the Bylaws?

I've created a sample checklist of components of Bylaws, things to consider when forming a new nonprofit or evaluating an existing one.

Size of Board

The size of your Board requires a great deal of consideration. Make it too large and nothing gets done, make it too small and you don't have sufficient board members to get anything done. I know of a national society that has 65 Board members! The largest for profit board of a Fortune 500 enterprise has 33 Board members, so why would a nonprofit even think it needed 65 Board members?

My preference is somewhere between 9 to 11 Board members. Large sufficient to take on projects and small sufficient not to come to be unwieldy. Remember if you easily feel you need more hands you can form committees of members, you don't have to have Board members as sole staff of working committees.

Requirements of Board Members

Clearly state in your Bylaws what the requirements are for being a Board member. Is there an organizational membership requirement? Is there a residency requirement? Is there a expert requirement (must be practicing a inevitable trade or profession)? Is there an age requirement (must be at least 18 years old)?

What disqualifies someone from being on the Board? I had a nonprofit Board applicant send me his application. I called to tell him there was a residency requirement; that he had to live inside the city. The next day he re-sent his application with an in-city address and said that he had moved into the city in the last 24 hours. Mmmm.

Are there special requirements for recruiting Board members? Do you want to enshrine in your Bylaws inevitable types of people? For instance, do you want to prescribe inevitable seats for someone from the religious community, the legal community, the educational community, etc.? These "special talent" seats may help your society ensure diversity in Board membership and ensure you have a collection of talent nearby the table.

How are Board members seated? Is it by majority vote or is it by two-thirds of the vote? What will be the Board members' terms of service? Are the seats for two years with renovation up to a six year maximum? And do comprise term limits, there is nothing worse than perpetual Board members, like bread, they do go stale.

How will you take off "bad" or unethical Board members from the Board? What is the procedure? One of my popular Bylaws is automatic dismissal if someone has missed two meetings in a row and requiring the absent Board member to be affirmatively voted back on the Board.

How are vacancies filled? How are meetings conducted? What is the process for calling an administrative Session and what kinds of things can be discussed during administrative Session? Typically, because of open meeting or "sunshine" laws in various states, administrative Sessions easily can only be called to discuss a personnel matter.

Is the administrative Director or Chief Officer an ex-officio of the Board? Will there by any recompense to Board members, such as a stipend or the reimbursement of travel expenses?

Who Are the Officers?

Typically most organizations have a President (or Chair); Vice-President (or Vice Chair); Secretary and Treasurer. Officers beyond those are up to the society and should be based on need. Sometimes expanding the administrative Committee can be helpful. Remember an administrative Committee can be empowered to make decisions between Board meetings, so the makeup of the administrative Committee is important. Possibly the Membership Chair should be part of the administrative Committee or the legal appointee should sit on the committee.

How are these Officers elected and how long is their term? How are they removed from office without removing them from the Board?

Is There a Membership Provision?

If you are starting or have a membership organization, what is your membership provision? What are the requirements for becoming a member and do you want a provision that revokes membership, and if so, what is the procedure for that? Do members have voting rights?

How Do You Make Bylaws Changes?

You want to make sure you can convert the Bylaws if necessary. However, you want to make it difficult sufficient that the Bylaws aren't constantly changing to suit Board member whims, yet doable sufficient that they can be changed when needed. Is there a announcement requirement? Is it 30 or 60 days? What is the announcement requirement? Must it be in someone at the Board meeting or should it be by certified mail? Who can recommend a Bylaws convert and how do they recommend one? Does it wish a majority or two-thirds vote of the membership?

Some states or countries wish that inevitable things be included in Bylaws in order to get or mouth nonprofit status, check with your state or country for its requirements.

The traditional function of Bylaws is to serve the organization. If your Bylaws are interfering with that goal, it might be time to witness them and make needful changes.

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