Many nonprofits in Nigeria start as informal passion driven efforts to help others or achieve a shared goal. Over time, the impact grows, and the founders think, “Hmm, Let’s do this again.” That’s when things start to get serious. When it comes time to register, the Corporate Affairs Commission (CAC) requires a nonprofit constitution outlining the objectives, board of trustees, and other documentation. Suddenly, structure becomes more than an idea, it becomes a necessity.

But there’s more to nonprofit structure than meeting CAC registration requirements.

Your Board of Trustees: More Than a Formality

Your board of trustees can significantly shape your nonprofit’s future. Beyond satisfying CAC regulations, the right board brings strategic thinking, credibility, fundraising support, and innovation. Instead of casually selecting friends or family, take time to choose individuals with expertise, alignment to your mission, and a willingness to contribute meaningfully.

Structure is Strategy: Insights from the Field

Abiola Adebiyi, founder of a nonprofit in Lagos, shared in Kryvent’s Founder Series:

 “I wish that I knew that everything falls and rises on your system. You need a solid team that is committed and built on systems.”

Structure goes far beyond filing papers. It impacts everything from operations to team dynamics. One of the most critical areas where nonprofits struggle? People management.

Volunteer Management: The Next Big Challenge

In many nonprofits, volunteer management becomes the second major challenge after fundraising. Some issues that come up include:

– Volunteers not responding to tasks

– Team members showing low commitment

– Individuals who contribute little but are difficult to exit

Often, these problems are rooted in three key stages:

 Recruitment: How do people join your team? Do you have a clear system?

 Engagement: Are responsibilities clear? Are tasks delegated properly? Are there team leads, incentives, KPIs, and feedback systems?

Exits: What is your plan for volunteers who are no longer a fit? Do you have exit policies or succession plans?

Relying solely on passion and goodwill isn’t a sustainable approach. When drafting your nonprofit constitution, don’t just write your vision and mission for CAC compliance. Think about the people who make up your nonprofit now and in the future. Lay a foundation for strong people systems.

Beyond the Constitution: Internal Documentation That Matters

There is no single template for how nonprofit teams should be structured. Some nonprofits operate with lean startup-like teams, while others have broader departments depending on their mission. The key is ensuring:
– Clear roles and responsibilities
– Defined reporting structures
– Channels for participation and continuity

Building a Financial Structure That Supports Your Mission

Your nonprofit financial structure is not just about your fundraising strategy. It must cover:
– Budgeting for mission-aligned programs
– Tracking administrative and operational expenses
– Transparency in financial decisions

This is especially important for attracting funders and venture philanthropists. In addition:
– Register your nonprofit with the Federal Inland Revenue Service (FIRS) within six months of CAC registration
– File annual tax returns
– Comply with the Money Laundering Prohibition Act of 2011
– Engage with SCUML (under the EFCC) to set up anti-money laundering and counter-terrorism financing policies

Programs, Projects, and Feedback Loops

Programs and projects are the vehicles for delivering your mission. Structure your work by:
– Defining short-term projects vs long-term programs
– Establishing systems to evaluate and measure success
– Creating feedback loops for learning and improvement
What gets measured gets improved. Structure gives your goals a practical pathway.

Conclusion

Nonprofit structure is more than just a CAC requirement. It is the engine that powers your vision, team, and programs. From governance and volunteer management to financial compliance and program design, the systems you build will determine the impact you make.

If you want your nonprofit to thrive in Nigeria’s evolving nonprofit landscape, structure is not optional, it’s essential.