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nonprofit - financial reports of chapters


Betty43

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Our nonprofit organization has chapters in many states. Sometimes a chapter will host a gathering open to all members and the organization will provide some start-up money. The chapter submits a financial statement following the event, and the organization is repaid the start-up money and also gets a share of the profits. A member has asked to view all of the financial statements submitted by chapters for the past several years. Are we required to share these records? If so, in what form?

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Our nonprofit organization has chapters in many states. Sometimes a chapter will host a gathering open to all members and the organization will provide some start-up money. The chapter submits a financial statement following the event, and the organization is repaid the start-up money and also gets a share of the profits. A member has asked to view all of the financial statements submitted by chapters for the past several years. Are we required to share these records? If so, in what form?

I assume you are talking about financial records belonging to the (national) organization. Who (or what) are the members of that organization? Are the chapters your members, or are individual people members?

When you say that a "member has asked to view all of the financial statements..." who exactly is making the request -- is it a member of the national organization; or a member of one of the chapters; or is the request coming from one of the chapters?

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OK, individuals are members, and groups of member individuals may form a chapter and become a chapter of the national organization. The records belong to the national organization but were completed and submitted by the one chapter that put on the conference. The person who is asking for them is an individual member, a member of a chapter (but not of any of the chapters that put on the conferences), and a member of a national standing committee (but not on the Executive Board).

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Individual members have voting rights in elections. Individuals may attend national conferences and represent their chapters at general membership meetings. But an individual cannot go to a chapter to which he does not belong and demand to review that chapter's books. Should the financial relationship between a chapter and the national oranization be kept between them? That is, whether the national conference made money or lost money for the chapter, is that any other chapter's business?

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Should the financial relationship between a chapter and the national oranization be kept between them? That is, whether the national conference made money or lost money for the chapter, is that any other chapter's business?

RONR speaks in terms of members, not chapters. Any member of a particular chapter has as much right as any other member of that chapter to know what's going on with that chapter (barring any of your rules to the contrary). And any member of the national organization has as much right as any other member of the national organization. So, as Chris H. suggested at the top, it's up to your organization(s) to work out the details.

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