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Setting Budgets


Guest Sandy Kasson-Dick

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Guest Sandy Kasson-Dick

I am the secretary of the Oldtime Farming Festival of Centerburg, Ohio. My question is when the officers set a budget for each committee is it up for negotiation or does the officers make that final decision? Also when you go over a budget to give donations to others, is the amount the final decisions of the officers? Thank you for your time.

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I am the secretary of the Oldtime Farming Festival of Centerburg, Ohio. My question is when the officers set a budget for each committee is it up for negotiation or does the officers make that final decision? Also when you go over a budget to give donations to others, is the amount the final decisions of the officers? Thank you for your time.

RONR does not give any officer the authority to set a budget or allocate funds. That authority is vested in the assembly of the society, except to the extent otherwise indicated in the bylaws. Check for a provision in the bylaws that addresses this matter.

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Who is authorized to approve the Budget? The Board or the general membership? If the Board, then the whole Board, not just an officer or a couple of officers, have to vote on it and a majority of votes cast will dictate if it is passed. In my experience, the Treasurer will normally present the Budget (i.e. make a recommendation) and it is up to the Board to approve it as presented, or to amend it and then approve it.

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We have a board of a president, vice president, treasurer, secretary, and a trustee. And it was our thought that we were the ones who made that decision. But the membership does not have a concept of money and it takes over 20,000 dollars to make our festival happen. This is why we try to present a budget and stick to it otherwise there would be no funding for the festival.

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We have a board of a president, vice president, treasurer, secretary, and a trustee. And it was our thought that we were the ones who made that decision. But the membership does not have a concept of money and it takes over 20,000 dollars to make our festival happen. This is why we try to present a budget and stick to it otherwise there would be no funding for the festival.

"A society has no executive board, nor can its officers as a board, except at the bylaws may provide; and when so established, the board has only such power as is delegated to it by the bylaws or by vote of the society's assembly referring individual matters to it." (RONR 11th Ed., p. 482 ll. 25-29)

So, regardless of what you "thought", the authority of the Board to set the budget must either come from the bylaws or from the assembly (of the membership) by vote. Otherwise, it does not exist.

Perhaps the membership needs to be brought into the discussion more. Maybe they don't know what it takes to put on the festival. But assuming that many, if not all, of them are adults with jobs and bills and other basic life expenses, I'm sure they have some concept of money. Maybe they don't deal with $20,000 issues on a regular basis, but I'll bet some have bought houses and cars and can find their way to understanding about the festival expenses.

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