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Members and Membership

Unlike a regular corporation, a non-profit corporation does not have stockholders (since non-profit corporations do not issue stock). Instead, as an option, non-profit corporations may choose to have members.

A formal membership structure will often grant members certain basic rights, such as the power to vote for directors and the right to approve a sale or merger. Most non-profits (especially smaller ones) do not to have members, due to the additional paperwork and formalities that are required.

Even without members, other people may still participate as an advisor, patron or contributor, but without a formal vote. However, if your non-profit is a club or social organization, it might make sense that all of the members have a formal vote on certain important matters.

 


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