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Bylaws Function as “Constitution” Of Nonprofit Corporations

Regulation of corporate governance demands as much care and thought as the Constitution of a country

Bylaws of a nonprofit Corporation should not simply be taken “off the shelf” and adopted by the organization. The Articles of Incorporation and the Bylaws essentially form the “Constitution” of the organization and establish the rules for governance. Like all Constitutions, they should be considered carefully.

In most states, the state nonprofit corporation law provides minimum standards and default procedures if the Articles and Bylaws are silent on many issues. But the Bylaws can be used to spell out specific provisions and are particularly important in establishing the rules about who controls the organization.

Unlike a business corporation, in which, in very simplistic terms, the one who buys the most stock controls the organization, the Bylaws of a nonprofit corporation spell out the essential relationships of the participants. They are the power document of the organization.

Not a subscriber and want to access this page? The page provides an "annotated" sample form of bylaws, explaining how to deal with some of the key issues of governance.  You can buy the 15 page PDF in our store for only $9.95.

Gifts directly to homeless students not deductible

A taxpayer who claimed a variety of charitable contribution deductions has learned the hard way that contributions are not deductible if you don’t follow the rules.  The Tax Court has sustained a decision of the Internal Revenue Service to deny more than $6500 in claimed charitable contribution deductions.

Unsuccessful grant applicant cannot oust grantmaker

An unsuccessful applicant of a grant cannot force the dissolution of the foundation that declined to make it and the transfer of the foundation’s assets to itself, even after several attempts, an appellate court in Louisiana has ruled.  It has dismissed the latest of several lawsuits seeking the same relief from the courts.

Court Says Racial Slurs Against Black Health Aide Did Not Create Hostile Work Environment

“An objectively reasonable caretaker would not have been detrimentally affected” by patient’s use of N-word “all the time”

A federal District Court in Pennsylvania has dismissed a hostile work environment claim brought against a behavioral health facility by a black woman aide because “an objectively reasonable caretaker would not have been detrimentally affected” by her patient’s regular race-based harassment.

How much does it cost to go to Supreme Court?

How much does it cost in legal fees and costs to take a case to the U.S. Supreme Court?

It is hard to tell exactly, but the Thomas More Law Center, one of the two plaintiffs that took the Schedule B case to the U.S. Supreme Court and won the right to not file its list of donors with the California Attorney General in order to qualify for charitable solicitation rights within the state, has asked for an award of $5,145,434.07.  A federal District Court in California has awarded $2,840,603.13.

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