What Will Happen If We Don't File Our Bylaws?

Churches' bylaws are the basic rules that govern them. They spell out the structure, regulations, and processes that guide decision-making, leadership, and operations. Some churches don't realize how important it is to correctly file and keep their bylaws up to date, which could put them in danger of legal problems and operational uncertainty. If you want to know what happens if you don't file your bylaws, this complete guide will explain why bylaws are important, what happens if you don't follow them, what you need to do to stay legal and well-governed, and how to make sure your church stays that way.

What Church Bylaws Are, Why They Matter, and What They Do

What do bylaws mean?

A church's governing board makes bylaws, which are a codified set of rules that govern how the church runs its own business. They usually cover:

• Structure of the board and leadership
• Requirements for membership
• Rules for meetings and how to vote
• Officer duties and roles
• Policies for conflicts of interest
• How to make changes

Why Are Church Bylaws So Important?

Bylaws ensure there is a clear structure for governance and uniformity in operations. They give judgments and acts legal power, set clear roles and practices to protect board members and leaders, make things more open and accountable to members and funders, and help people follow state and federal laws.

The Law Says You Have to File Bylaws

Requirements of the State

In most jurisdictions, churches and other nonprofit organizations have to send their bylaws to the Secretary of State or a similar entity. Filing bylaws is a common step in the process of starting a business. Some states require bylaws to be sent in or made available when asked.

Things to Think About with the IRS

The IRS doesn't need you to send in your bylaws with your 501(c)(3) application, but they may ask for copies during audits or inspections. Having well-written bylaws helps you apply for and follow the rules for being tax-exempt.

What Happens If You Don't File Bylaws

Legal Problems and Risks

If there isn't clear governance, there may be disagreements between leaders and members. Without the right authority, anybody may be able to challenge board decisions as invalid. Board members and officers may be held personally liable more often.

Losing the Ability to Not Pay Taxes

If governance is weak or not documented, the IRS may pay more attention. If you can't show that you have good governance, you could lose your tax-exempt status.

Confusion About How Things Work

Without bylaws, it is hard to know how to hold meetings, elections, and make decisions. Without a legal basis, efforts to grow and expand may come to a halt.

Less Trust in Donors

Donors and grantmakers feel better when things are clear and accountable. Bad management could mean less money coming in.

How to Properly File and Keep Bylaws

Writing the Bylaws

Get a lawyer who knows a lot about church and nonprofit law. Make sure your church's bylaws fit its size, structure, and mission needs.

The Process of Filing

Follow your state's rules for incorporating and send in your bylaws. Keep copies of the most recent versions on file with the church and the state.

Regularly Check and Update

Check the bylaws every so often to make sure they still follow the law and the needs of the ministry. Change the bylaws using the correct steps that are mentioned in the document.

How to Best Manage Bylaws

1. Keep an official book of bylaws that leaders may access.
2. Teach board members and leaders about the bylaws and why they are important.
3. Write down any changes and approvals.
4. Include the bylaws in the training and onboarding of new leaders.

How Church Law and Strategy Help People Follow the Bylaws

Church Law and Strategy's THE FOUNDATION PLUS PLAN (Tier 2) helps churches with 900 to 2,500 members with all aspects of governance documents, such as writing, filing, and regularly reviewing bylaws. Our THE PASTOR SUPPORT PLAN (Tier 3) gives churches with 2,500 to 10,000 members regular strategic advice, priority legal access, and governance help to make sure they follow the rules and stay healthy as an institution.

Summary Checklist: Don't Forget About Your Bylaws

• Know what the state needs from you to file your bylaws.
• Make sure that bylaws are written and filed correctly.
• Check and update your bylaws on a regular basis.
• Teach leaders about the rules of governance.
• Make sure that bylaws are part of how the church works and are open.

In Conclusion

Bylaws are more than just pieces of paper; they are the rules that keep your church running smoothly, legally, and in accordance with the law. If you don't file or keep your bylaws up to date, your church could face legal, financial, and reputational problems. Church Law and Strategy is dedicated to helping churches follow the rules of governance by offering personalized support through our Tier 2 and Tier 3 plans. This helps ministries develop strong, compliant foundations for long-term success.

Links Inside

• Find out more about compliance and legal audit reports for churches.
• Look at the legal technique for pastoral recompense.
• Learn about advising for church tax strategy.

Links Outside

• Best Practices for Nonprofit Bylaws
• National Council of Nonprofits – An Overview of the Bylaws
• Sample bylaws and tips for running a charity can be found at NOLO

This blog is not legal advice; it is only for informational reasons. For personalized advice on governance and compliance, talk to a competent lawyer.