Non-Profits: Ensure Your Bylaws Are Strong

If you’re a non-profit leader, you most likely have received a call from a board member sharing they have the solution to an issue you discussed at the last board meeting.

The solution is expensive, but after researching it more, it does seem like the perfect fit. It truly does solve the issue at hand, so you go ahead and sign a contract for the solution.

Everything seems to be running great until someone files a complaint against how you procured that solution.

You didn’t know there were multiple companies offering similar solutions, including one that was significantly less expensive than the one the board member offered. As such, the accusations start flying internally and on social media.

They accuse you of wasting the non-profit’s funds.

They accuse you of just pleasing a board member.

They accuse you of providing insider information to a board member.

They accuse you of not following the professional standards of non-profits.

None of this is good, especially when the media picks up on the situation, but it all could have been avoided with a great set of bylaws that were followed methodically.

If your non-profit organization does not have a great set of bylaws, or you simply want to make sure your non-profit organization’s bylaws are up to date, please reach out to The Orlando Law Group today. Our attorneys specialize in helping non-profits on all types of legal issues facing non-profits, like bylaws.

Why are bylaws important?

The bylaws of any organization are the most essential part of any organization, especially a nonprofit. They are the road map for governance, providing direction to staff and the board about how the non-profit organization operates.

Bylaws should be tailored to the organization and its needs. Yes, bylaws are required by Florida statute, but there is no instruction manual for what is included in an organization’s bylaws.

Florida statutes simply state:

The initial bylaws of a corporation shall be adopted by its board of directors. The power to alter, amend, or repeal the bylaws or adopt new bylaws shall be vested in the board of directors unless otherwise provided in the articles of incorporation or the bylaws. The bylaws may contain any provision for the regulation and management of the affairs of the corporation not inconsistent with law or the articles of incorporation.

It is clearly up to the organization what should be in your bylaws.

Steps to take when creating your non-profit organization’s bylaws

Any non-profit organization’s bylaws should reflect the organization’s goals and objectives. While it’s not a tactical document on how to reach those goals, it is a document to show the procedures and processes the organization should follow to reach those goals and objectives.

We find the best way to start the process is to create a small group of board members who are interested in how the organization is governed. These individuals usually have experience in non-profit board service and understand what usually needs to be in a non-profit organization’s bylaws.

This group should work with an attorney, who can provide guidance to ensure you follow all statutes that govern non-profit organizations. The attorney can also provide you with examples of bylaws from other organizations to set the stage.

Most of the work on changing bylaws happens in this committee. They will work with staff to see what works and what does not work in the current bylaws. They will look for places that need clarification or items that are just not irrelevant.

This group will put together a proposed set of bylaws to present to the full board, which will then accept the changes or ask for further changes.

Of course, many people do not like working through committees, but with a non-profit’s bylaws, it is important to have the full board’s commitment to the document. With their commitment, it is much easier to follow and refer to in situations where the staff may need guidance.

Read More