For Part 6 of our series on Upcoming Filing Deadlines and Annual Review for Exempt Organizations, we're talking about updating your nonprofit organization's bylaws.

At the end or beginning of each year, your nonprofit organization should review its bylaws to ensure that the bylaws remain in compliance with applicable federal and state laws.  For instance, the State of New York recently overhauled its Not-for-Profit Corporation Law, forcing many New York-based nonprofit organizations to amend their bylaws to come into compliance with the new requirements.  Thus, it is imperative that your nonprofit organization annually review its bylaws to ensure compliance with applicable federal and state laws.

Additionally, at the end or beginning of each year, your nonprofit organization should review its bylaws to ensure that the bylaws accurately reflect the nonprofit organization's corporate governance structure and operations.  For instance, outdated bylaws may reflect that your nonprofit organization's board of directors must be composed of five directors, when, in fact, the nonprofit organization has never had more than three directors serving at a time.  Additionally, outdated bylaws may call for director or officer election procedures that are no longer followed by the board.  For these reasons, your nonprofit organization should annually review its bylaws, even if there have not been recent changes to applicable federal and state laws.

Keep in mind, too, that if your nonprofit organization makes amendments to its bylaws, it must notify the IRS of such amendments.

Check back tomorrow for our final installment of this series, which will discuss corporate recordkeeping, specifically, meeting minutes and written consents.  And, for more on the recent changes to New York's Not-for-Profit Corporation Law mentioned above, see our previous post.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.