Article Archives >> To the Point

Our 501(c)(3) grassroots advocacy group is composed of low-income individuals, and our board is elected from our membership.  While always excited about their part in the organization, the current board has become detrimental to the organization, community-wise and work-wise.  We are thinking of disbanding the board in order to reappoint a new board.  But, if we disband the board, is it the same as disbanding the organization?  We want to ensure the continuation of the organization and maintain the support of our community members.

When you say “we,” I am assuming that you mean a group of members of a nonprofit corporation who have the power to vote to remove the current members of the board and replace them with new ones.  That is usually permitted under state nonprofit corporation laws, but you should check the state law and the organization’s bylaws to confirm that you have the power (and the votes) to do so.

If you do have the power and do remove the current board, it would not constitute disbanding the corporation.  The corporation would continue with the new board, with all of the power and authority, and all of the rights and obligations, it had under the old board.  Only the leadership would be changed.

Comments from our Readers

Does the membership elect the BOD? Why not just vote in better people when their term is up or have a special meeting to oust the bad ones? My advice is to read & learn the bylaws like the back of your hand. --K.P. via e-mail

8/11/2009

Article Archives >> To the Point

Funding Social Change By Ronald W. Clement $10.00 Visit our Amazon bookstore for more books on nonprofit law.