dues versus assessments

[flipper92]

The executive board of our organization would like to raise funds for a special project. We have nothing in our bylaws providing for special assessments. Can the board simply ask the membership to voie on an increase in our annual dues for a period of time (say two years), then return dues to the previous level, in order to avoid amending the bylaws to provide for the special assessment? Note: the EB has stated explicitly that the increase in dues would be temporary and for this specific project.

[Shmuel Gerber]

The executive board of our organization would like to raise funds for a special project. We have nothing in our bylaws providing for special assessments. Can the board simply ask the membership to voie on an increase in our annual dues for a period of time (say two years), then return dues to the previous level, in order to avoid amending the bylaws to provide for the special assessment? Note: the EB has stated explicitly that the increase in dues would be temporary and for this specific project.

 

No. "Members cannot be assessed any additional payment aside from their dues unless it is provided for in the bylaws." (RONR 11th ed., p. 572)

[Gary c Tesser]

They can ask for donations, like they can ask me to donate the keys to my silver Porsche, and like WQXR and WBAI have been asking for donations all week. You can bet yes to WBAI, yes to WQXR, no on the car, and voluntary for the special project. Same as you, flips.

[Gary Novosielski]

No. "Members cannot be assessed any additional payment aside from their dues unless it is provided for in the bylaws." (RONR 11th ed., p. 572)

 

But this is not aside from their dues.  This is their dues.  

 

If the membership has the power (per the bylaws) to change the amount of the dues , then why can they not increase the amount for a period of time, even including a sunset provision that the increase expires after n years?

 

I think the sticky part is promising that a portion of these funds will be dedicated to a specific purpose.  That's always an accounting nightmare, a financial scandal in a bottle, and a fiction at best, so should probably be avoided.  It might even call into question whether that makes them dues, or some other assessment, so you're back where you started.

 

That's my HO, not the General's.

[Shmuel Gerber]

But this is not aside from their dues. This is their dues.

If the membership has the power (per the bylaws) to change the amount of the dues , then why can they not increase the amount for a period of time, even including a sunset provision that the increase expires after n years?.

Calling a special assessment "dues" doesn't make it so. And an increase in dues, whether temporary or not, obviously requires an amendment to the bylaws as well.

[Tom Coronite]

The executive board of our organization would like to raise funds for a special project. We have nothing in our bylaws providing for special assessments. Can the board simply ask the membership to voie on an increase in our annual dues for a period of time (say two years), then return dues to the previous level, in order to avoid amending the bylaws to provide for the special assessment? Note: the EB has stated explicitly that the increase in dues would be temporary and for this specific project.

I live in MA and know all about "temporary" tax increases that never go away.  Reading flipper92's original post it appears (to me anyway) he is well aware that special assessments must be authorized in the bylaws; he mentions exactly not wanting to do that.  

 

We have no idea how the bylaws are worded regarding dues.  Hypothetically, if bylaws stated that dues are to be paid at a rate set by the board each year at the January board meeting, it's not a stretch to think dues could be increased without a bylaw amendment, I would think.  

 

If the membership decides to increase their own dues (for whatever reason and for whatever timeframe) the procedure for dues setting (whatever that is) certainly has to be followed.  But to the original question, I can't see why the membership cannot decide to increase their own dues.  Even if in two years they find the promise of a reduction was an empty one.

[Gary Novosielski]

Calling a special assessment "dues" doesn't make it so. And an increase in dues, whether temporary or not, obviously requires an amendment to the bylaws as well.

Obvious to whom?  The bylaws might provide the membership, the board, or some other body with the power to set the amount of dues.  Although the bylaws would contain a requirement for the payment of dues, the exact amount need not be explicitly stated there.

[flipper92]

I probably should have mentioned this at the outset: the current bylaws make no mention of the amount of dues, how the amount of the dues is to be set or changed, or who has the power to enact that change. In the past the executive board has simply stated what the new dues would be for the coming year (and even then only if there was a change from the previous year). No one ever objected, or asked for explanation or rationalization for the increase.

[Josh Martin]

I probably should have mentioned this at the outset: the current bylaws make no mention of the amount of dues, how the amount of the dues is to be set or changed, or who has the power to enact that change. In the past the executive board has simply stated what the new dues would be for the coming year (and even then only if there was a change from the previous year). No one ever objected, or asked for explanation or rationalization for the increase.

 

If the Bylaws are silent on the topic of dues, you have no dues, so temporarily raising them is the least of your problems. Establishing dues will require amending the Bylaws.

 

If the Bylaws mention dues but lack all the other stuff you mentioned, you'll have an interesting Bylaws interpretation question on your hands. See RONR, 11th ed., pgs. 588-591 for some Principles of Interpretation.

[Tom Coronite]

I guess there are a lot of voluntary donations, then!  

[Shmuel Gerber]

I should have worded my reply more carefully. What I meant is that the same rule that applies to additional assessments apart from dues obviously applies to an increase in the dues themselves. If not provided for in the bylaws, the bylaws need to be amended, or else it cannot be levied.

[Gary Novosielski]

I probably should have mentioned this at the outset: the current bylaws make no mention of the amount of dues, how the amount of the dues is to be set or changed, or who has the power to enact that change. In the past the executive board has simply stated what the new dues would be for the coming year (and even then only if there was a change from the previous year). No one ever objected, or asked for explanation or rationalization for the increase.

But does it say nothing at all about dues, or does it just mention that you have to pay dues, and leaves it at that?

 

If the former is true, then you have no dues, and nobody needs to pay them.

 

If the latter is true, then you have dues, and since there is no provision for who gets to set the amount, it must be the general membership.  If that power were delegated to the board, the bylaws would have to say so.

[flipper92]

Dues are mentioned in the context of membership: you have to pay them to be a member, and if you don't, you lose your membership. No provisions for who sets the amount, or how that amount can be modified. Thanks to everyone for the input, btw. Very helpful stuff here!

[sMargaret]

No provisions for who sets the amount, or how that amount can be modified. 

That's a bit of an oopsie, isn't it?