How is a non profit board suppose to be set up?
I think Indiana give you two choices. An advisory board or a controlling board. I do not think are board is legally set up as a controlling board. There is a disagreement among board members as to what we are considered. What state office would verify this? Is a controlling board suppose to be chosen by its members not by the board itself? An advisory board can be set up that way but a controlling board? We do not have any pass records stating this to are knowledge. How do you go from changing from an advisory board to a controlling board?
Public Comments
- Please set up an Advisory board first and then convert it into controlling board if necessity arises !!. The board has to be chosen and set up by the promoters themselves !!
- If the organization is incorporated, the by-laws of the organization should provide you with the necessary guidance regarding the status of your board. From your question, it sounds like the organization may not be formally incorporated. It may be an informal association. If you are not incorporated, it really doesn't matter what type of Board you have - "advisory" or "controlling".
You're correct, in most cases, an Advisory Board does not have the same legal liablity as a governing board, however, it also does not have the same legal authority as the governing board. Typically, advisory boards serve a fairly limited role......"advising" and "fundraising".
The By-laws should also stipulate how the Board is elected and how the officers are elected as well. Many membership organizations do elect their governing boards, however in many membership organizations, there are different classifications of members and not all of them have voting authority. Typically, advisory boards are appointed by the governing board of the organization.
In order to change an advisory board to a "controlling" or governing board, the current governing board will need to resign or remain until their terms of office end. After that, the advisory board can then be elected into the empty seats. If the board size needs to be enlarged, you may have to amend the By-Laws.
In most states, you can check with the Secretary of State's Office Department of Corporations for information about your organization, if it is legally incorporated.
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