Charity FAQs

Understanding the term "members" in the context of charities is crucial for ensuring smooth operations and avoiding conflicts. Many people might think that a member is anyone involved with the charity, whether as a volunteer, donor, or advocate. However, in a legal sense, a "member" has a specific definition. Legally, a member is someone with voting rights as defined in the organization's corporate documents, typically the bylaws.

Who are Members?

In many charitable organizations, members play a vital role. Unlike general participants or supporters, members have specific voting rights and responsibilities outlined in the charity’s bylaws. For example, they vote on key issues like electing the Board of Directors or approving major changes in the organization’s direction.

Charities with Members

In contrast to US nonprofits, all Canadian not-for-profits (and incorporated charities) must have members. The presence of members adds a layer of democracy to the organization's operations.

The Role of the Board of Directors

In addition to the requirment for all Canadian not-for-profits to have members, all must also have a Board of Directors. These directors are responsible for the overall governance and strategic direction of the organization. To avoid confusion, we will refer to them simply as directors in this article.

Types of Conflicts Between Directors and Members

Conflicts between directors and members typically arise from two main issues:

1. Unclear Communication: Misunderstandings about the roles, responsibilities, and hierarchy within the organization.
2. Disagreements on Actions: Directors taking actions that members disapprove of, or vice versa.

Conflicts Due to Communication

Communication issues often arise from unclear corporate documents or poorly communicated policies. To prevent this, it's essential for charities and not-for-profits to have well-defined documents, such as bylaws and articles of incorporation, which clearly outline:

• The hierarchy within the organization.
• The voting rights and responsibilities of members.
• The process for selecting members and directors.

If these details are missing or unclear, it is crucial to update your corporate documents. Clear communication of these policies to all involved parties is also essential. Providing new members with a welcome packet or email that outlines their benefits and responsibilities, and where to go with questions, can go a long way to help prevent conflicts.

Conflicts Over Actions

When conflicts arise from actions taken by either directors or members, it's essential to refer to the organization's conflict resolution procedures outlined in the bylaws. If there's a suspicion of bylaw violations or legal issues, consulting a charity lawyer is recommended.

Benefits of Having Members

Having members can strengthen a charity by making it more democratic and accountable. Members can contribute valuable ideas and hold directors accountable, fostering a more dynamic and responsive organization.

While having members can enhance a charity's operations by introducing democratic elements, it also requires careful management to avoid conflicts. Clear communication, well-defined corporate documents, and an understanding of legal requirements are key to maintaining a harmonious relationship between directors and members. By proactively addressing potential issues, charities can ensure that all parties work together effectively towards their common goals.

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