Every nonprofit corporation needs a board. To be able to enjoy the various benefits of a nonprofit status, the state laws require articles of incorporation designating a board that stands for the organization. The board is the accountable body that:
Bylaws are the legally binding rules that outline how the board of a nonprofit will operate. While they are unique to each organization, bylaws generally have a similar structure and use. Because the amendment of this document usually requires a super-majority vote of the board or in a formal membership organization the members may need to approve changes to the bylaws, it is not practical to include all detailed guidelines in this document. A separate set of policies and procedures will clarify further how decisions are made.
Medium-sized nonprofit organizations may have the size and volume of activities that call for internal control systems in excess of the resources available to deliver such systems. This situation does not justify inadequate internal controls. It does emphasize the need to constantly evaluate the internal costs to make sure that scarce resources are best applied.
Creating a policy is like making a decision when you have time to be thoughtful, to do adequate research, and to consult colleagues and other professionals rather than making decisions in haste as
