Bylaws are an organization's internal operating rules. State law may require nonprofit corporations to have bylaws and nonprofit organizations generally find it advisable to have internal operating rules. Federal tax law does not require specific language in the bylaws of most organizations. Note, however, that organizations that want to specify an annual accounting period generally do so in their bylaws. State law requirements for bylaws For additional information on what the state may require with respect to bylaws, you may want to contact state officials. Annual accounting period Exempt organizations must keep books, reports and file returns based on an annual accounting period called a tax year. A tax year is usually 12 consecutive months. There are two kinds of tax years: Calendar tax year This is a period of 12 consecutive months beginning January 1 and ending December 31; or Fiscal tax year This is a period of 12 consecutive months ending on the last day of any month except December. Required provisions Federal tax law does not require specific language in the bylaws of most organizations. Return to Life Cycle of a Private Foundation
