How to Write Bylaws for a Nonprofit Organization Part 2
80Table of Contents
Contents of this multi-part series on writing bylaws for a non profit organization.
2. Article 1 (NAME) YOU ARE ON THIS PAGE
3. Article 2 (OBJECTIVES AND PURPOSES) YOU ARE ON THIS PAGE
5. Article 4 (MEMBERSHIP, VOTING ELIGIBILITY, RUNNING FOR OFFICE)
6. Article 5 (BOARD OF DIRECTORS)
7. Article 6 (FUNCTIONS AND DUTIES OF MEMBERS OF THE BOARD)
Recap From Previous Section
In the previous section, we learned how to write a mission statement. The mission statement will act as sort of a guideline when drafting the rest of the non profits bylaws. Also, as mentioned previously, I am using a set of bylaws that I produced for a non profit community theater in South Carolina. Each section can be copied and reproduced to suit your organization.
Artcicle 1 of the Bylaws
Article 1 of your bylaws has only one function and that is to clearly state the NAME of your organization and any variances of the organizations name. Before adding this name to your bylaws, you should have done your due diligence and made sure that a) the name is available and is not registered or trademarked by any other organization, b) the name suits the organization, c) the name is agreed upon by the voting members of the organization.
Here is an example of The League of Fools Article 1 bylaw:
ARTICLE 1: (NAME)
The name of the group shall be The League of Fools Community Players (LOFCP) or (LOF) in all instances both public and private.
Short and simple, this Article identifies to the public and to any members, or potential members, the nonprofits name and variances of the name.
Article 2 of the bylaws
Article 2 of the bylaws will spell out the purpose and objectives of the nonprofit organization. When writing the purpose section of this article, keep in mind that it is pretty much a standard statement to keep the organization in compliance in order to obtain the 501(c)3 status which will make the organizations exempt from federal income tax. Here you will basically state the type of organization and that it will restrain from activities that are forbidden under the IRS code for nonprofits. Next you will clearly state the objectives of the organization. It’s not necessary, but you can also offer a recap of those objectives. The following is how I crafted Article 2 of the bylaws for The League of Fools:
ARTICLE 2: ( OBJECTIVES AND PURPOSES )
Section 1: (STATEMENT OF PURPOSE)
Notwithstanding any other provision of these articles, The League of Fools (LOF) is organized exclusively for the following purposes: literary, theatrical and/or educational purposes, as specified in section 501(c)(3) of the Internal Revenue Code of 1954, and shall not carry on any activities not permitted to be carried on by a corporation exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code of 1954.
Section 2: (RESTRICTIONS)
No substantial part of the activities of The League of Fools (LOF) shall be carrying on propaganda, or otherwise attempting to influence legislation (except as otherwise provided by Internal Revenue Code section 501(h). the League of Fools does not participate in, or intervene in (including the publication or distribution of statements), any political campaign on behalf of any candidate for public office.
Section 3: (OBJECTIVES)
A) To present live theater productions for the cultural education, entertainment, and inspiration of the community.
B) To foster and develop, through theatrical workshops and other appropriate means, the artistic talents and skills of (LOF) members and other interested persons.
C) To engage in and subsidize social activities designed to foster the foregoing purposes of the organization as limited by the laws.
In the furtherance of these objectives, and in accordance with the powers conferred by its Certificate of Incorporation, The League of Fools may collect membership dues, admission fees, gratuities, and bequests; may buy or otherwise acquire, sell, or otherwise dispose of, and mortgage or otherwise hypothecate real, personal, and mixed property of all kinds; and may, in general, exercise all of the powers granted by corporate law in the State of South Carolina.
The League of Fools is a not-for-profit corporation. No member of the organization shall profit in any tangible way from its activities. All funds are to be disbursed in furtherance of the objectives set forth in Article2, Section 3. In the event of the dissolution of this organization, all monies, property, and physical assets of the organization shall be distributed for any worthy purposes in accordance with a majority of the votes cast at a final meeting of membership called for that purpose.
The League of Fools organization is nonpolitical in character and shall not engage in political activities of any nature.
That’s all there is to writing Articles 1 and 2 of your organizations bylaws.
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Moving On
The League of Fools bylaws have 10 Articles, so I have decided to break it down and explain the bylaws 2 Articles at a time. When you are ready to move on to the next section, just click on the link at the top of the page.
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