Corporate Bylaws Form - Nonprofit Help - administrative Director As Board Member?
Good afternoon. Now, I learned about Corporate Bylaws Form - Nonprofit Help - administrative Director As Board Member?. Which may be very helpful in my experience and also you. Nonprofit Help - administrative Director As Board Member?I received an email from a client request my thoughts on whether or not the founder of their nonprofit - who is also its menagerial director - could be a voting member of the board. (Note that the question was 'could' be...)
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Well yes, the menagerial director 'could' be a voting member of the board, but the question allowed me an opportunity to reflect on the perceptions of nonprofits as a contentious benefit for fundraising, as espoused by my own club The town for Ethics, Governance, and Accountability. Those three words (ethics, governance, and accountability) have such a strong degree of symbolism and expectations that I must take care to furnish my opinions only after pondering what 'could' be and what 'should' be. (What 'shall not be' is always the easiest plan to offer.)
My response? While the Irs is the regulator of nonprofits, the corporations of the nonprofits are governed by state law. So, sass estimate one was to check the laws of the state in question.
Answer estimate two: why does the menagerial director need to be on the board? Or, does the menagerial director just want to be on the board? How many board members are currently on the board and would the menagerial director help or hinder the voting of the board? Presumably, the menagerial director is the key worker of the board and is tasked with running the club and attending board meetings anyway. But, I never did settle the sass to the basic question of why?
In my years of taste as a board member, it has not been unusual for the menagerial director to also serve as the corporate secretary and whether ex-officio board member, non-voting board member, or voting board member.
Ultimately, my sass to the above question was to make the menagerial director and ex-officio (non-voting) member of the board holding the office of corporate secretary. This approach, assuming there is no disagreement with state law pertaining to corporate governance, seems reasonable because it is extremely likely that the board has tasked its menagerial director with maintaining all corporate records (minutes, resolutions, policies, etc.) anyway.
In addition, the articles of incorporation and the bylaws may or may not speak to the issue of board governance. It the bylaws do not spell out, specifically, how the board is to be structured, then I would extremely advise that proper revisions take place at the very next board meeting.
Remembering that it is my strong confidence that ethics, governance, and accountability are the key measures of any nonprofit, the perception about these issues is every bit as leading as the reality when it comes to the decisions of donors/grantors and contributions to the organization. Accordingly, it continues to be my strong advice that nonprofits avoid any potential misperception so as to assert that contentious edge within their peer group.
There are two linked issues that need to be discussed in future articles. One is the challenges of the founder of the non-profit serving as menagerial director or board member; the other is the increased scrutiny by the Irs on board members of nonprofits. In short, as a board member, you will be held personally liable for the affairs of the corporation. This accountability is entirely appropriate: nonprofit board member is not a 'resume builder' but it is a serious accountability that Irs regulators have rightly decided to address.
Every attempt should be made by every nonprofit board to task whether its menagerial director or, perhaps, a committee chair, with a proper retell of the policies of the organization. The new Irs Form 990 is an excellent place to start - especially if your nonprofit is a estimate of years old -- it would be good to see what issues you will be required to attest to at your next each year filing.
I hope you receive new knowledge about Corporate Bylaws Form. Where you possibly can put to used in your day-to-day life. And just remember, your reaction is passed about Corporate Bylaws Form.
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