Establish Board and Officers
The board of directors is a critical component of a nonprofit organization. The board is responsible for overseeing the organization’s activities, ensuring that it operates in accordance with its mission and values, and making decisions that are in the best interest of the organization and its stakeholders. Establishing a board of directors is one of the first steps in the process of establishing a nonprofit organization. The board will play a key role in guiding the organization through the process of applying for 501(c)(3) status with the IRS and ensuring that the organization is in compliance with all legal and regulatory requirements. The board should be composed of at least three unrelated individuals in order to meet the IRS requirements for a nonprofit organization.
Officers are the individuals who are responsible for the day-to-day operations of the organization. The officers are typically elected by the board of directors and serve in specific roles. In the state of California, a nonprofit public benefit corporation is required to have at least three officers: a president, a secretary, and a treasurer. The officers are responsible for carrying out the decisions of the board of directors, managing the organization’s finances, ensuring that the organization operates in accordance with its bylaws and other organizational documents, and maintaining the organization’s ongoing state and federal tax-exempt compliance requirements.
The board and officers should be selected early in the process of establishing a nonprofit organization, as they will need to be involved in the drafting and approval of the organization’s bylaws, articles of incorporation, and other organizational documents. The board and officers will also be responsible for making key decisions about the organization’s activities, programs, and fundraising efforts. It is important to select individuals who are committed to the organization’s mission and values and who have the skills and experience necessary to help the organization achieve its goals.
Tasks
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Select board members: Identify individuals who are committed to the organization’s mission and values and who have the skills and experience necessary to help the organization achieve its goals. The board should be composed of at least three unrelated individuals in order to meet the IRS requirements for a nonprofit organization.
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Elect officers: Once the board of directors has been established, elect officers to serve in specific roles. A nonprofit public benefit corporation in California is required to have at least three officers: a president, a secretary, and a treasurer. The officer appointments will not be official until the initial board meeting, however it is important to have these roles identified early in the process.
Cost
- None