Not for Profit Bylaws: Have Them Drafted and Reviewed By a Lawyer
Are you thinking about forming a not for profit corporation in Oakbrook Terrace or elsewhere in DuPage County? There are many benefits to establishing an organization that is incorporated under the Illinois General Not for Profit Corporation Act of 1986 (805 ILCS 105/). One of the first steps to forming a not for profit (or nonprofit) organization is to draft bylaws. According to the statute, bylaws are “the code or codes of rules adopted for the regulation or management of the affairs of the corporation irrespective of the name or names by which such rules are designated.” In other words, the bylaws provide important rules and procedures concerning how the not for profit will operate.
Drafting bylaws can be a complicated process, and there are numerous issues that the not for profit organization or corporation will need to consider as it writes its bylaws. Given the complicated nature of forming a not for profit organization, it is extremely important to work with an experienced DuPage County business law attorney as you are forming your organization or are revisiting your bylaws.
Business Law Attorney Can Help Address Significant Questions for Drafting Bylaws
What kinds of questions need to be asked and addressed in the drafting of the bylaws of a not for profit in Illinois? Some examples of issues that a DuPage County business law attorney can assist with that should be addressed in your bylaws include but are not limited to the following:
- Directors for your not for profit organization: under the Illinois General Not for Profit Corporation Act, you need to have at least three directors on your board. Your bylaws can also state that you plan to leave open the number of directors on your board, but the range cannot be greater than five. For instance, your bylaws can say that you plan to have a range of three to eight directors or five to ten directors, but your bylaws cannot say that you plan to have a range of three to ten directors. You will also need to clarify how directors will be elected and what kinds of terms they will serve, as well as how a director can be removed.
- Meeting of the directors: under the Act, your organization must have at least one meeting per year. However, for a not for profit organization to be successful, it is often necessary to have more than one meeting per year. Your bylaws should explain terms for special meetings, the notice that must be given before calling a meeting, and how the organization will determine that there is a quorum.
- Duties of officers: what duties will the officers on your board have, and what are their titles? How will they be elected, and for what type of term? How can an officer be removed?
- Responsibilities of members: if you have a not for profit organization that is a membership organization, your bylaws should make clear member dues, how those dues get paid, qualifications for membership in the organization, and the number of members that need to be present for business to move forward. Under the statute, a member organization needs to have at least 10 percent of its members present to do business.
Seek Advice from a DuPage County Business Lawyer
If you are forming a not for profit organization, a skilled DuPage County business lawyer can help draft your bylaws. Our advocates are committed to providing services to small business owners in the Muslim community, and we can discuss your questions and concerns with you today. Contact Farooqi & Husain Law Office for more information.