Nonprofits run more effectively with a well-functioning Board of Directors and clearly defined officer roles. Yet there a can be confusion between the two positions,
Board governance is the cornerstone of effective nonprofit management. Comprised of individuals with diverse expertise and a shared commitment to the organization’s mission, the board
Administrative and voluntary dissolution are two ways to end a nonprofit corporation’s existence. Best practice is to voluntarily dissolve.
The end of the year is a busy time for all organizations, and we often see important obligations slip through the cracks. Properly navigating these tasks is essential to maintaining tax-exempt status and ensuring an organization’s continued success.
Typically, nonprofit board members are elected for a specified period of time, called a term. Terms can be structured as either successive or staggered. Successive
Conflicts inevitably arise. Nonprofits should adopt a Conflict of Interest Policy to navigate these situations.
n the complex landscape of nonprofit corporations, the role of the board of directors is crucial in steering the organization towards its mission. To ensure transparency, accountability, and sound decision-making, boards must establish and implement robust policies and procedures.
A corporation’s governing documents are fundamental to how the organization operates. In most states, a nonprofit corporation’s foundational documents generally include Articles of Incorporation and Bylaws. Though, states differ in verbiage.Â
The extent to which a board participates in its daily operations varies. Whether your board is a hands-on board or a policy-making board, several fundamental decisions must always remain in the board’s hands:Â
Ultra vires is a Latin term conveying that acts outside the permissible scope of authority set forth in a corporation’s governing documents are an unauthorized activity that cannot be ratified by its Board of Directors. Although many states have effectively abolished this common law concept by granting corporations significant autonomy, ultra vires continue to be an important doctrine in the tax-exempt nonprofit context because such organizations are required to limit their powers to qualify for tax exemption.
Most states require you to register your organization if you solicit donations from their residents. Many states also require registration if your organization collects substantial or ongoing donations from their residents, even if you aren’t specifically targeting donors in that state. Download our comprehensive list of each state’s requirements.
Download our free guide to learn about the many elements needed to run a successful nonprofit organization, as well as how to avoid common pitfalls and mistakes.