Forming a non-profit is complicated, so many hoop to jump through and giving board the control to vote the FOUNDER out of the club doesn't sit well with me, especially if you are the one funding the cause with your own money!
Related to financial control: Who all should have signatory responsibilities for an org's bank accounts? Just the treasurer and director, or some admin staff too?
In our opinion, it's situationally dependent. Many medium to larger-sized nonprofits are essentially small businesses with daily revenue and expenses, plus a staff of employees. It's totally impractical for an organization like that to rely solely on an officer or director to write a check or make a bank deposit. Small volunteer-driven organizations probably don't have anyone else but an officer or director to trust with such. It's not so much about the who, but rather the "how". Make sure you have checks and balances in place, like requiring multiple signatures on checks over a certain amount, or use a purchase order system before expenses are incurred. It's all about fiduciary duty. We have a video on that topic, so that's recommended to watch.
My question is how do you take over a non-profit? Meaning, I think a non-profit no longer follows their own bylaws so I want to take them over and re-establish the non-profits for the purpose it was originally established I need help
No one has the right to take over a board, even if they believe that board is violating their own bylaws. You can always approach one or more board members with your concerns. You might even volunteer to serve on the board. Maybe they will bring you on. If it is a membership organization, and you are a voting member, then maybe you can bring up your concerns is a meeting of the membership. Otherwise, I'm not sure what else you would be able to do.
I appreciate the response and it appears there is no professional, state or federal accountability for a non-profit other than financial. I have effectively wiped the dust off my feet and they would probably not accept my offer to volunteer. I have started my own non-profit, single member. I am indirectly making myself available to a 1500 member congregation that I care deeply about and I'm concerned that they may be in harm's way.
In Cindy's case, if she were to fund the foundation with $100,000, that's only $5000 in outgoing donations every year to satisfy the 5% requirement. If she's planning on outsourcing the backroom management, regulation and taxes to a company like Foundation Group, I'm questioning why a multi-member board is necessary. Would people be interested in volunteering for a board whose duties and impact are so limited. What if her desire is to found it, fund it, make grants and leave the backroom to the professionals?
Well, "Cindy" wasn't one of the questioners, so I'm guessing you're referencing the last question from Juliette. As a private, grant making foundation, I would say that she might be able to do that, though the IRS usually isn't so keen on a sole director (not member) even in a private foundation. Our takeaway, however, was that she is planning a public charity with an active program, not a foundation. In that case, in her desire to control ALL aspects, we don't think a public charity makes sense for her. If you were referencing a different questioner, let us know.
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Thanks for the great info!
Forming a non-profit is complicated, so many hoop to jump through and giving board the control to vote the FOUNDER out of the club doesn't sit well with me, especially if you are the one funding the cause with your own money!
Lots of people feel the same way for legitimate reasons. See our video on Sole Member nonprofits to understand how to mitigate some of that concern.
Related to financial control: Who all should have signatory responsibilities for an org's bank accounts? Just the treasurer and director, or some admin staff too?
In our opinion, it's situationally dependent. Many medium to larger-sized nonprofits are essentially small businesses with daily revenue and expenses, plus a staff of employees. It's totally impractical for an organization like that to rely solely on an officer or director to write a check or make a bank deposit. Small volunteer-driven organizations probably don't have anyone else but an officer or director to trust with such. It's not so much about the who, but rather the "how". Make sure you have checks and balances in place, like requiring multiple signatures on checks over a certain amount, or use a purchase order system before expenses are incurred. It's all about fiduciary duty. We have a video on that topic, so that's recommended to watch.
My question is how do you take over a non-profit? Meaning, I think a non-profit no longer follows their own bylaws so I want to take them over and re-establish the non-profits for the purpose it was originally established I need help
No one has the right to take over a board, even if they believe that board is violating their own bylaws. You can always approach one or more board members with your concerns. You might even volunteer to serve on the board. Maybe they will bring you on. If it is a membership organization, and you are a voting member, then maybe you can bring up your concerns is a meeting of the membership. Otherwise, I'm not sure what else you would be able to do.
I appreciate the response and it appears there is no professional, state or federal accountability for a non-profit other than financial. I have effectively wiped the dust off my feet and they would probably not accept my offer to volunteer. I have started my own non-profit, single member. I am indirectly making myself available to a 1500 member congregation that I care deeply about and I'm concerned that they may be in harm's way.
In Cindy's case, if she were to fund the foundation with $100,000, that's only $5000 in outgoing donations every year to satisfy the 5% requirement. If she's planning on outsourcing the backroom management, regulation and taxes to a company like Foundation Group, I'm questioning why a multi-member board is necessary. Would people be interested in volunteering for a board whose duties and impact are so limited. What if her desire is to found it, fund it, make grants and leave the backroom to the professionals?
Well, "Cindy" wasn't one of the questioners, so I'm guessing you're referencing the last question from Juliette. As a private, grant making foundation, I would say that she might be able to do that, though the IRS usually isn't so keen on a sole director (not member) even in a private foundation. Our takeaway, however, was that she is planning a public charity with an active program, not a foundation. In that case, in her desire to control ALL aspects, we don't think a public charity makes sense for her. If you were referencing a different questioner, let us know.
@@FoundationGroup Must have had flashbacks to my first girlfriend, thx
*promosm*