Your Illinois nonprofit bylaws equip your organization with the framework for its internal operations. Adopting your bylaws is crucial to your nonprofit’s formation process and should not be taken lightly. Bylaws lay out the rules for holding meetings, managing your board of directors, keeping records, and more. By defining these rules, your bylaws help prevent and resolve internal conflicts and help keep your nonprofit from dealing with disputes.
Use our attorney-drafted nonprofit bylaws template to get rolling on your bylaws today.
You’re not required to file your bylaws with the Illinois Secretary of State like your Illinois Articles of Incorporation, but that doesn’t mean your bylaws are less important. Your bylaws are likely to become public record, particularly if you apply for tax-exempt status, so make sure they stand up to scrutiny. It’s also good practice to keep a copy of your bylaws on file and available for members or in case of state inquiries.
In the Illinois Compiled Statutes, 805 ILCS 105/102.25 states that bylaws “shall” be adopted at your nonprofit’s first board meeting. In legal speak, “shall” means “must.” So, if you want to remain in compliance with Illinois state law, you need to have bylaws.
You can expect many third parties to ask for your bylaws as a part of doing business. For example, banks, landlords, and partnering organizations commonly request to see copies of your bylaws to confirm the legitimacy of your nonprofit. Additionally, the IRS will review your bylaws if you seek tax-exempt status.
Not adopting bylaws can open the door to legal complications for your nonprofit. Why? Bylaws define the rules for managing your directors, compensating members, and dealing with conflicts of interest. Without these regulations in place, disputes over procedures are much more likely. Disputes can lead to state investigations and even court battles, negatively impacting your finances and reputation. Having strong bylaws in place helps safeguard your nonprofit from internal arguments and their consequences.
Want to learn more? Check out our Guide to Nonprofits.
Your Illinois nonprofit bylaws should begin with essential information about your nonprofit, like its name, address, and purpose. The rest of your bylaws should lay out the exact rules for your nonprofit’s internal operations. Bylaws typically include guidelines for:
Your board can also tailor your bylaws by adding specific provisions as long as those provisions don’t contradict Illinois state law or your articles.
Yes. Your nonprofit bylaws are a legally binding agreement for operating your organization. Everyone involved with your nonprofit’s operations, from employees to the board chair, must follow your bylaws. If your bylaws are violated, your organization and the individuals at fault could face negative legal consequences.
This depends on your nonprofit. Since you don’t need to file your bylaws with your articles of incorporation, your bylaws will not become public record when you establish your business. However, your bylaws will be made public if you apply for 501(c)(3) tax-exempt status with the IRS because you must attach a copy of your bylaws to your application (the IRS makes all applications public).
Writing your nonprofit bylaws can be intimidating—they’re a complex document. Luckily, we’ve got a free, attorney-drafted nonprofit bylaws template to get you started.
