Create Bylaws
All Rhode Island Non-Profit Corporations are required by R.I. Gen. Laws § 7-6-16 to create and maintain bylaws. Bylaws are a non-profit corporation’s internal operating guidelines, and they are vital to the proper management and day-to-day affairs of the organization.
Bylaws typically include information that will ensure a non-profit corporation’s long-term success in achieving its goals. For example, bylaws may include:
- How meetings will be called and hosted.
- How key decisions will be made.
- Who will exercise financial control over the non-profit’s assets.
- What the roles and term limits of officers will be, as well as their unique responsibilities.
- How board members are elected and ousted.
- Guidelines to amend the bylaws as the organization changes.
A non-profit’s bylaws should be well-written and specific to the needs of the organization, because once signed by the board of directors, they become a legally binding contract that determines how the organization will operate. This important legal document will also provide significant benefits in helping the organization:
- Qualify for federal tax exemption and state sales tax exemption.
- Raise money by soliciting donations from the public, financial institutions, private corporations, and government bodies.
- Avoid unnecessary conflict and confusion about each officer’s and director’s rights and responsibilities.
- Provide stability and continuity of operations by defining how the organization will operate if there is a change in leadership.
To learn more about bylaws and how to draft them, consult The Alliance for Non-Profit Impact’s Resource Library.