Nonprofit Laws in Virginia
Organizations formed in Virginia to conduct business on a nonprofit or not-for-profit basis are usually formed as Virginia nonstock corporations. These corporations, which can, but are not required to, have members (i.e., a membership), do not have owners.
When you file for incorporation you must include whether or not you will have members and you must identify how directors will be elected.
You must have at least 3 directors, not related to each other. When recruiting nonprofit board members, keep some things in mind to find the right candidates:
You exist to provide public benefit. Your board members should have deep knowledge and passion for your mission. When board members have a thorough understanding of your mission, they can make decisions that consider your community’s needs and help you achieve your goals.
Your goal is to create a board with a diverse background and complementary skills. Consider having a member with financial experience or legal expertise. If your nonprofit relates to something specific such as medical services, having a medical professional on your board can be a real asset.
Your board should participate in at least one annual meeting. You may need the board to meet quarterly, have a retreat, or participate in other activities. Your board members need to be able to attend these events, so be sure the people you choose understand the time commitment and can meet those expectations.
Conflicts of Interest:
The board’s job is to ensure your mission and your community needs are met. Be sure to select individuals who do not have relationships with your management team or key employees.