
All non-profit corporations must have an organizational structure and Rules or bylaws by which they are managed. The organizational structure is Comprised of directors and officers, which handle the internal management of The corporation, and perhaps also of members, which may have the right to Elect the directors of the corporation. The internal management of the corporation Is regulated by the corporate bylaws and the articles of incorporation.
Incorporators
An incorporator is someone who signs and delivers the Articles of Incorporation
to the proper state office. In practice, the incorporator is often selected
from among the persons who serve as the initial directors of the corporation.
Your state law may require more than one person of legal age (18 or older).
Directors
Board members should be selected from the general community according to
what they can provide to your organization. Find people with a sincere interest
in the work of the organization and a commitment to its mission, vision
and goals. This group should not be related individuals and no one should
have more than one vote. Your state law may require 3 or more of legal age
(18 or older) depending on your organization it is advisable to have at
least 5 directors. Non-profit directors normally serve without compensation
except for any expenses incurred in performing director duties.
What are their duties?
The Directors are charged with a "governing" role, acting in good
faith, being diligent, prudently overseeing the affairs of the non-profit
and not allowing personal interests to override responsibility as a director
Thus, the board is answerable to the agency's members, if any, and to the
government agencies that regulate and monitor non-profit corporations on
behalf of the community. The term of office is commonly set in the corporation's
bylaws. (Your state may set a maximum term.) Generally a majority quorum
of the board of directors must be present to take action at a meeting and
once a quorum is present, the affirmative vote of a majority of those present
is usually necessary to pass a board. (Voting by proxy at a board meeting
is illegal under the incorporation laws of most states.) Your board may
take action without a meeting by written consent or conference call. Check
your state's nonprofit corporation law "Action by written consent."
For effective governance, a board generally needs to meet at least every
three months.
A written notice regarding the time and place of regular and special meetings
must be sent to all board members a certain days prior to the meeting as
stated in the bylaws. A provision for waiving notice should be included
to allow directors to accept notice by telephone or other means.
Officers
You should have at least a President, a Secretary and a Treasurer. Typically,
officers are selected from the board of directors. No one person should
hold two or more offices. (Many states specifically prohibit this.) Their
terms are fixed by the board of directors. The powers, duties and responsibilities
of corporate officers are usually set in the bylaws. Generally, the actions
and transactions of an officer are legally binding on the corporation. It
is best to have your board pass a resolution granting the officer special
authority to enter into a transaction on behalf of the corporation.
Compensation
Any salaries/wages, fringe benefits or other forms of compensation paid
or provided to the officers should not exceed a value which is reasonable
and commensurate with the duties and working hours associated with such
employment.
