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Directors and Members

Like any corporation, a nonprofit has a board of directors to make important policy decisions, and officers (president, treasurer and secretary) to oversee and manage the day-to-day operations of the organization. The organization can also hire  employees. Unlike regular corporations, however, nonprofit corporations do not have shareholders or owners. Nonprofits are not owned by any person or group of persons and cannot be sold.

The members, directors and officers of the corporation are generally prohibited from profiting at the expense of the corporation. The assets, income or profits may generally be distributed to such people only as compensation for services, as a distribution of assets upon dissolution of the corporation, as payment of dividends to members as provided for in special instances in articles of incorporation, or when profit derived from sales to members is rebated to members in proportion to fees paid by members.

Inside Directors and Members