How best to set-up non-profit organizations?

UPDATED: Sep 15, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 15, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

How best to set-up non-profit organizations?

I have recently founded a non-profit organization in CA with a close friend. I filed the paperwork but I want us to be co-founders and co-presidents of our organization. How do I accomplish this legally? Also, can founders of non-profit organizations be included in the board of directors? We want to be president and co-president of our board of directors but we also want to receive a salary as president and co-president of our organization. Finally, can we include a statement in the bylaws such as “Under no circumstances can the board of directors vote to remove the president and co-president”?

Asked on September 15, 2011 under Business Law, California


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The problems you have are multi-fold. You cannot truly make a profit in a non-profit and collect a salary while sitting on the board of directors. Most non profits like this would be highly scrutinized and the fact you are including yourself as both in the board of directors and essentially as employees would negate any neutrality the board is supposed to have. Additionally, you need to ensure that the provision you would like to add passes muster with the case law in California. By essentially tying the hands of the board, it would lead the way to everyone assuming and perceiving that all board votes and actions are biased. You may wish to discuss your ideas with business incubators in California, who can help you obtain some brochures and guidelines for good and functioning and legal non profits.  

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption