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Requirements for Nonprofit Board of Directors in Indiana
- According to Indiana state code, each non-profit organization in the state must have a board of directors comprised of a minimum of three members.
- Board members must be over 18 years old and reside in Indiana.
- The board of directors of an Indiana nonprofit serves as the organization’s support system. Its responsibilities include financial management, structural counseling, executive director recruiting, and much more.
- In Indiana, a 501(c)(3) qualifying nonprofit board of directors MUST:
- Elect at least three directors who are not connected to one another.
- Serve a period of no more than five years.
- To start an Indiana 501(c)(3) nonprofit organization, you’ll need to first register a nonprofit corporation with the state of Indiana, and then apply for tax exempt status under section 501(c)(3) with the Internal Revenue Service.
Choosing the Right Number of Board Members for a Nonprofit
- How many board members should your nonprofit have? There is no "magic number"—the appropriate size depends on your needs.
- While the law sets minimums, "average" boards have 15-16 members according to research. But average doesn’t mean effective. Think strategically when composing your board. Reflect diverse skillsets, experiences, and networks.
- Common executive roles are Chair/President, Vice Chair, Secretary, and Treasurer. Look for the skills each requires when recruiting.
Nonprofit Board Membership Size and Composition
- The appropriate nonprofit board size depends on your specific situation. Assess your needs, then recruit to match. Consider organizational scale, mission, diversity aims, and board responsibilities.
- How many board members should a nonprofit have? The appropriate nonprofit board size depends on specific needs. Assess organizational scale, mission, diversity aims, and responsibilities when deciding membership numbers.
- The IRS requires federal nonprofits have at least three independent directors. States range from one to five. Comply with both rules.