Nonprofits often cannot survive without a well-functioning board. The functional management of the nonprofit (its health), which includes everything from fundraising to organizing charitable activities, comes from the nonprofit’s board of directors, officers, and employees. Because board members come and go, a healthy nonprofit must also be able to handle change.
When creating or developing your nonprofit, and creating its board, we at James C. Provenza & Associates can help. As Chicago nonprofit attorneys, our goal is to provide expert legal counsel and representation for your nonprofit’s interests. Call our law firm today (847) 729-3939.
In the meantime, you can find some basic information about nonprofit boards below.
What a Nonprofit Board Does
A critical component of a nonprofit (that serves public interest) is its federal and/or state tax-exemptions. In Illinois, a nonprofit can receive these tax benefits if its mission is to serve public interest, and the nonprofit’s board holds the legal duty of making sure the nonprofit acts accordingly to its public service mission. This is actually why some board members are known as “trustees.”
The board also shoulders other duties:
- Such as defining the nonprofit’s mission
- Establishing the nonprofits central tasks, vision, and priorities
- Develop strategies to meet goals
- Ensures that plans and programs are realized
It is also important to note that, in many cases, the board members are involved in fundraising efforts, gaining access to potential donors, and actually doing the nonprofit’s work.
How to Recruit Board Members
Remember, a board keeps the nonprofit from straying from its central mission, allowing the nonprofit to remain in compliance with Illinois and federal regulations and ensuring that it keeps its tax-exempt status, if applicable. Therefore, board members must share passion and commitment for the nonprofit’s mission, which means getting involved with the nonprofit’s activities as well as fundraising campaigns.
When incorporating the nonprofit, Illinois law requires a minimum of three directors (board members). If you’re appointing members to your nonprofit’s board, then in most cases it is a formal process. Generally, there is a nominating committee who evaluates the board’s situation, lists prospective new members, and recommends those prospective candidates to the board. The board will then vote on new members.
Contact Chicago Attorney James C. Provenza Today
As one of the leading nonprofit attorneys in Chicago, lawyer James C. Provenza has worked with many nonprofits throughout the area, and we’ve seen how influential a quality board can be. Furthermore, with expert legal counsel and guidance behind your board, you can always make sure that the nonprofit’s actions remain in legal compliance. To speak with attorney Provenza, call our Chicago law firm today at (847) 729-3939.