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Volunteer President spending organization's money


Guest Lillette

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The Executive Committee is responsible for "control of funds and management of all financial matters." Organization has a paid Executive Director. Can the President, who is an elected volunteer, contact an attorney and/or parliamentarian on her own without authorization from the Executive Committee and incur expenses for the organization? So far these expenses total several thousand dollars and were not budgeted for. 

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If your bylaws state that the executive committee is responsible for "control of funds and management of all financial matters", such a motion may not be in order if the executive director reports to the board: "As a general principle, a board cannot delegate its authority - that is, it cannot empower a subordinate group to act independently in its name -except as may be authorized by the bylaws (of the society) or other instrument under which the board is constituted..." (RONR, 11th ed. p.484, l.30 - p.485, l.1).

 

This restriction would not apply, however, if your paid executive director is a member of the board.

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This restriction would not apply, however, if your paid executive director is a member of the board.

 

I don't see how that would change anything. Delegating authority to an individual member of the board is still delegating authority.

 

 Then would requiring the prior approval of the Executive Committee work instead?

 

Certainly - although, based on the facts provided, it seems to me that this is already what is required.

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