Changing your Board of Directors is an important process that requires proper documentation and compliance with both your internal governance and external reporting requirements. Whether you’re adding new members or replacing existing ones, handling the transition correctly ensures that your nonprofit continues to operate smoothly and in compliance with state and federal laws.
Internal Process for Changing Board Members
The process for changing board members starts internally. Your nonprofit should follow its bylaws and established governance procedures when electing new members or removing current ones. Typically, this requires a vote by the current board members or approval through a Unanimous Consent process.
To help manage this transition, Instant Nonprofit provides all of our customers with essential tools, including the following forms:
Board Recruitment Form: Use this form to guide the process of identifying and selecting new board members. It helps ensure that your nonprofit brings in individuals with the right skills, experience, and commitment to your mission.
Unanimous Consent Form: This form allows your board to make decisions about board membership changes without holding a formal meeting. It's a helpful tool for efficient decision-making, especially when immediate action is needed.
Both of these forms are part of the corporate governance documents package provided with our Nonprofit Formation Packages. They help ensure that board changes are handled correctly and in compliance with nonprofit governance best practices.
Updating State and Federal Records
Once your board of directors has changed, it’s essential to update your state and federal records to reflect these changes. Both state and federal governments prefer that you report board member updates on your annual filings.
1. State Annual Report
Most states require nonprofits to file an Annual Report to stay in good standing. In this report, you can update the names of your new or departing board members. This keeps your state registration current and ensures your nonprofit is compliant with state regulations.
2. Federal Form 990
At the federal level, nonprofits must file a Form 990 annually. This form requires you to list your organization’s principal officers, which typically includes key board members like the President, Secretary, and Treasurer. Updating this information on Form 990 is critical to maintaining transparency with the IRS and the public.
Instant Nonprofit’s resources and tools simplify these updates by providing guidance on how to complete your annual reports and file your Form 990 correctly.
Instant Nonprofit's Support for Board Changes
At Instant Nonprofit, we understand that governance changes are a normal part of a nonprofit's lifecycle, and we’re here to help make the process as seamless as possible. Our Nonprofit Formation Packages come with a comprehensive set of corporate governance documents, including the Board Recruitment and Unanimous Consent forms, to guide you through board transitions. In addition, our tools and resources help ensure that your state and federal filings are up-to-date and compliant.
With these resources, you can confidently manage board transitions while staying in full compliance with all legal requirements.