How to Know When It's Time to Update Your Nonprofit Bylaws

Following is a transcript of this episode of the Two Minute Treasurer’s Tip Podcast from MoneyMinder, with audio/video below.

Welcome to the Two Minute Treasurer’s Tip Podcast. I am your host Cyndi Meuchel with MoneyMinder. Let’s talk bylaws today.

Jim writes: Our bylaws prohibit our group from having a credit card or debit card. A lot of our vendors require online payment by card. Any suggestions?

While bylaws do serve a purpose, which is to keep your group on the straight and narrow, they can feel outdated. Let me start by addressing this point first. Bylaws are meant to be updated and to evolve with your group. You might consider updating your bylaws to allow for the use of credit/debit cards, but perhaps you put in place strict controls – things like low, low credit limits.

If that’s not an option, then here are a few suggestions:

Check to see if the vendor you’re paying accepts e-checks. This will allow you to enter your account and routing information in lieu of mailing a check or providing card information.

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Another option is to have a board member use their personal credit card for these types of payments and then reimburse them. If you do this, just make sure to keep good records of repayment.

I would caution you about doing this with recurring payments or automatically renewing subscriptions though. You don’t want to be responsible for payments or subscriptions in the future that don’t get canceled and that your group no longer needs or uses.

That’s it for today! If you have a question, email it to me at [email protected]. My name is Cyndi Meuchel, and this is your Two Minute Treasurer’s Tip for today.