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Will revising bylaws change organization classification?

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Will revising bylaws change organization classification?

I'm a board member of a nonprofit sports club for kids. We're redoing our bylaws. We came across an entry that stated executive board members, Active members, Reserve Members shall pay an annual fee of $5. No one has done this in the last 10 years of the organization. Can we remove it or is there a reason that it's there?

It sounds as though the club may have been established as a membership organization in which the members elect the directors and have the ultimate power to control the corporation. It also sounds as though it has not been conducted as a real membership organization and has been operated with a self-perpetuating board, as is typical of many nonprofits.
If the bylaws provide for members who have legal rights, whether you want to eliminate them depends in part on the answer to the question: "Whose organization is it?" (See the Ready Reference Page of that title.) It probably makes sense to do so if the members have not been participating actively. Be sure to follow the proper procedures if you decide to do so.
Thursday, April 24, 2008

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