The Model Nonprofit Corporation Act (MNCA) is a

model act A model act, also called a model law or a piece of model legislation, is a suggested example for a law, drafted centrally to be disseminated and suggested for enactment in multiple independent legislatures. The motivation classically has been the ...

prepared by th
Nonprofit Organizations Committee
of the Business Law Section of the American Bar Association. The MNCA is a model set of statutes governing nonprofit corporations proposed for adoption by state legislatures. Many of the default procedures of the MNCA are different from standard

parliamentary procedure Parliamentary procedure is the accepted rules, ethics, and customs governing meetings of an assembly or organization. Its object is to allow orderly deliberation upon questions of interest to the organization and thus to arrive at the sense ...

, though they may be superseded by a provision either in the articles of incorporation or in the bylaws of the corporation. 37 out of the 50 states have adopted a version of the MNCA. Seven of these states have adopted the law entirely: Arkansas, Indiana, Mississippi, Montana, South Carolina, Tennessee and Washington. As far as the states that have not adopted the MNCA, they follow for-profit business law for the state.

History

The 1952 MNCA was published as a companion to the Model Business Corporation Act prepared by the Committee on Corporate Laws of the Section of Corporation, Banking, and Business Law of the

American Bar Association The American Bar Association (ABA) is a voluntary bar association of lawyers and law students, which is not specific to any jurisdiction in the United States. Founded in 1878, the ABA's most important stated activities are the setting of aca ...

. The original 1952 version of the model act was designed to "follow the

Model Business Corporation Act The Model Business Corporation Act (MBCA) is a Model Act promulgated and periodically amended by the Corporate Laws Committee of the Business Law Section of the American Bar Association (Committee). The MBCA had been adopted by 36 states and other ...

as closely as the subject matter permits." The MNCA has since been revised three times, most recently with the fourth edition, which was approved in 2021 and published in 2022.

References

* United States corporate law {{nonprofit-org-stub