How to Start a Nonprofit: FAQs

Q: What’s the difference between the articles of incorporation and the bylaws?

A: The articles of incorporation set up the basic terms of the corporation, such as its purpose and board of directors. The bylaws are the rules the organization adopts by which to govern itself. The articles serve like the organization’s declaration of independence and the bylaws are like its constitution and laws.

Q: We are just a small group, do we need bylaws?

A: No. Bylaws are not required but can help define the organization and its governance structure. If questions arise down the road, bylaws can help future staff and board members determine the actions that must occur. Organizations that do not have bylaws must legally default Minnesota Statute 317A, known as the Nonprofit Corporation Act.

Q: Why should I incorporate my organization?

A: Benefits to incorporating include the ability to purchase property, accept donations, enter into contracts, and dissolve when appropriate. Incorporating also provides limited protection to the governing body of the organization, as long as no wrong-doing by the board has occurred, they cannot be held liable.

Other resources:

Starting a Nonprofit workshop
MCN also offers a small-format workshop on starting a nonprofit in Minnesota.
More about Starting a Nonprofit workshop

Handbook for Starting a Successful Nonprofit
Priced low for small budgets, this publication is packed with accurate and up-to-date information on how to start and manage a successful nonprofit organization. 
More about the Handbook for Starting a Successful Nonprofit