Taking Initial Board Actions for Your California Nonprofit
The initial board actions for a California nonprofit typically involve organizational matters such as adopting bylaws, electing officers, setting an initial budget, and approving initial policies and procedures. These actions are crucial because they outline your nonprofit’s foundational governance structure, ensure legal compliance, and set the operational direction for the organization.
STEP 1
Initial Board Actions
While it is possible to form a California nonprofit on your own, consulting with an attorney or legal professional experienced in nonprofit law is advisable to ensure compliance with all relevant requirements.
The expert attorneys at Ambika Law, PC are ready to help.
Initial board actions allow your nonprofit to address important matters early on, creating a clear framework for the organization's mission, operations, and management. Initial board actions can include items that have already been completed during other steps of the nonprofit formation process, such as processes outlined when selecting board members or drafting bylaws, that simply need board approval.
At an official board meeting or by unanimous written consent, your nonprofit’s board of directors should take the following actions:
Adopt the nonprofit’s bylaws and conflict of interest policy
Set the exact number of individuals authorized to serve as directors for the nonprofit’s board
Establish the date your nonprofit’s fiscal year will end on
Approve establishing a bank account for the nonprofit
Approve applying for the nonprofit’s federal and state tax-exempt status
Approve reimbursement of any applicable startup expenses for the nonprofit
Approve the compensation of the nonprofit’s officers and individuals performing the function of officers, such as the Executive Director
Your nonprofit organization should keep detailed records of the actions approved by the board, as well as information about each individual serving as a director. Working with an attorney experienced in California nonprofit law can help ensure the right documentation is collected and stored in accordance with all applicable legal requirements.
