Bylaws are yet another tricky aspect of establishing a legal nonprofit business. There are guides both online[i] and in books that outline good templates and that can serve as useful guidelines. Bylaws include corporate objectives as well as more general things that a corporation will and will not do. Though these bylaws may be supplemented over time, a basic version will be sent along with the initial 501(c)(3) IRS application for tax exemption.
Some common inclusions in bylaws might include rules for when documents will be filed, the number of board members, a regular meeting schedule, rules for compensation, as well as general policies and guidelines. Ethics guidelines, too, are a very common type of provision in bylaws, especially in larger organizations. When the final draft of bylaws has finally been accepted by the members of an NPO, they may even contain specific stipulations on travel, executive compensation, or the required disclosure of conflicts of interest before a board member joins the company.
One of the most important aspects of drafting bylaws is that the rules and regulations for how decisions will be made are included therein. Meetings can be as formal or informal as the board decides, though it is a good idea to keep meetings formal to the point that order can be maintained in the event of a future dispute. Bylaws often require that annual reporting meetings and planning sessions, and can allow for electronic or telephone meetings, as well.
For the members a new nonprofit, it is important to remember that all bylaws are binding, and that all members must abide by them. It is often the case that when officers first take office, they are required to swear to abide by these bylaws.
[i] Writing Bylaws for an NPO, online. http://www.ivu.org/vuna/members/bylaws.html
