I received this question by email yesterday.  ‘I am incorporating my nonprofit.  The form asks if my nonprofit has members.  What does this mean?’

This is my answer:

The question asks whether your nonprofit organization has voting members. For example, some churches have members; those members meet once or twice a year to vote on organizational issues. Such a church would check both boxes, assuming that the minimum number of members voted ‘yes’ to incorporate. To answer that question, ask yourself who decides whether to shut-down the organization. Do you need a majority vote of the members, or will the founder, alone, make the decision.

Hopefully, if you are filling out this incorporation form, you have by-laws that indicate whether you have voting members or not. The law does not require a nonprofit organization have voting members, only a President, a Secretary, and a Treasurer. In Pennsylvania, the same person can hold all three positions. There are several good books on how to start a nonprofit in Pennsylvania. You may also qualify for free legal advice. In you are in Philadelphia, contact PhillyVIP at www.phillyvip.org; it has a small business and nonprofit section. Also, feel free to contact me if you have more questions.