As a nonprofit organization grows or changes, the board of directors may need to modify the bylaws. This could include increasing the number of directors or allowing virtual meetings. It is important to ensure that any amendments comply with state laws on non-profit organizations and the organization's procedures. Moving from in-person to virtual board meetings brings many challenges and logistical issues.
Your bylaws are a legal document that outlines your nonprofit organization's rules and procedures. When it is necessary to change the rules described in the bylaws, the board of directors must make and approve an amendment to the bylaws. Depending on the type of amendment, the law may require the nonprofit organization to report the update to state agencies, the IRS, or both. In many cases, if you had to include the names of the directors or initial officers of your nonprofit organization in the original articles of incorporation, you'll have to submit the amendment. If an association is a nonprofit organization, as is the case with most Louisiana associations, it will be governed by the Louisiana Nonprofit Corporations Act.
In addition to reviewing the statutes annually, nonprofit boards of directors should also review them every time there is a major change in the nonprofit organization. When you add an official position and assign functions in the statutes, you should review the sections on other functions of officials (to ensure that there is no overlap of functions) and on the total number of directors (to see if there are enough people to fill the required functions).Hotel Sales, Use, and Occupancy Tax License and Transitional Provider Certificate are required for any business that sells taxable items or provides taxable services in Louisiana. The Louisiana Housing Corporation ensures that Louisiana residents have access to safe, affordable, and energy efficient housing. As times change, boards of directors may need to change their protocols. Changing the charters of a nonprofit organization requires coordination and security, especially in a remote environment.
As important actors in society and the economy, it is essential for boards of directors to review and maintain their charters in order to ensure that they remain relevant to their mission. If you have any questions about the legitimacy of proposed changes, consult an attorney who is well versed in legislation on non-profit organizations. These differences include rules relating to maintaining federal and not-for-profit corporation tax exemption when organizational changes occur.