Assessments

[Guest Karen]

We have a Spring fundraiser that has been canceled due to the COVID -19 pandemic.  The bylaws require assessments established in connection with Chapter Fundraisers to be paid, prior to the event, in order to remain members in good standing.  Assessments are sent to our Foundation.  We have already had a winter fundraiser.  For this Spring fundraiser we sell tickets to the event. Enough ticket sales can offset the member's cost of the related assessment.  Some members have already purchased tickets for guest equal to or in excess of the required assessment.  It seems that the requirement for an assessment is somewhat separate of any fundraising activity?  We want to refund the Spring Fundraiser ticket monies to members, but it is not clear how this is possible, given the assessment requirement.  Does there need to be a vote on the matter or do we just give a rationale and refund the money?  If a vote is needed, then what language do you recommend?

[Josh Martin]

1 hour ago, Guest Karen said:

We have a Spring fundraiser that has been canceled due to the COVID -19 pandemic.  The bylaws require assessments established in connection with Chapter Fundraisers to be paid, prior to the event, in order to remain members in good standing.  Assessments are sent to our Foundation.  We have already had a winter fundraiser.  For this Spring fundraiser we sell tickets to the event. Enough ticket sales can offset the member's cost of the related assessment.  Some members have already purchased tickets for guest equal to or in excess of the required assessment.  It seems that the requirement for an assessment is somewhat separate of any fundraising activity?  We want to refund the Spring Fundraiser ticket monies to members, but it is not clear how this is possible, given the assessment requirement.  Does there need to be a vote on the matter or do we just give a rationale and refund the money?  If a vote is needed, then what language do you recommend?

I think a final answer to this question will involve a thorough review of the organization's rules. Based on the facts provided, however, I see no reason why the organization could not refund the tickets, although if it does so, it would appear that members would then need to pay the full cost of the assessment. I do think a vote on this matter would be advisable. It could be kept quite simple - "I move to direct the Treasurer to refund all tickets in connection with the Spring fundraiser." In the alternative, since members will still need to pay the required assessments, perhaps it could be "I move to direct the Treasurer to refund all tickets in connection with the Spring fundraiser that are in excess of a member's required assessment," as it seems a bit silly to refund all tickets and then ask members to pay the money back in the form of an assessment anyway.

Edited March 24, 2020 at 08:26 PM by Josh Martin

[Atul Kapur]

I assume some group had a vote (or unanimous consent) to cancel the fundraiser. That would be the precedent that you should consider following for the decision regarding any refunds.

Whether you have the authority to do that in your bylaws depends on the exact language of your bylaws.

[Guest Karen]

29 minutes ago, Atul Kapur said:

I assume some group had a vote (or unanimous consent) to cancel the fundraiser. That would be the precedent that you should consider following for the decision regarding any refunds.

Whether you have the authority to do that in your bylaws depends on the exact language of your bylaws.

The venue that we use is no longer conducting events this Spring, due the COVID-19 guidelines of no more than 10 people allowed to be gathered in one place. We do not have space in our calendar to reschedule.  The Finance Committee and President decided to cancel the event for the safety of chapter members and guest.  There is no language in the bylaws that references this specific fundraiser.  It merely speaks to assessments in connection to "Fundraisers and Special Events" being due prior to the events. 

[Guest Karen]

40 minutes ago, Josh Martin said:

I think a final answer to this question will involve a thorough review of the organization's rules. Based on the facts provided, however, I see no reason why the organization could not refund the tickets, although if it does so, it would appear that members would then need to pay the full cost of the assessment. I do think a vote on this matter would be advisable. It could be kept quite simple - "I move to direct the Treasurer to refund all tickets in connection with the Spring fundraiser." In the alternative, since members will still need to pay the required assessments, perhaps it could be "I move to direct the Treasurer to refund all tickets in connection with the Spring fundraiser that are in excess of a member's required assessment," as it seems a bit silly to refund all tickets and then ask members to pay the money back in the form of an assessment anyway.

Okay.  Since the matter is being handled by the Finance committee, then I suppose the Motion could come from them.  I'm still unclear on the assessment.  Members speak of them as the same, but do you agree that the assessment and tickets sales are separate?

[Josh Martin]

44 minutes ago, Guest Karen said:

Okay.  Since the matter is being handled by the Finance committee, then I suppose the Motion could come from them.  I'm still unclear on the assessment.  Members speak of them as the same, but do you agree that the assessment and tickets sales are separate?

As I understand the facts from your original post, the bylaws require members to pay certain assessments. The bylaws also provide that assessments may be (in whole or in part) offset by ticket sales. The bylaws do not provide any mechanism to waive the assessments. So I guess I would agree that they are separate, although they also seem to be related in some way. So the ticket sales could potentially be refunded, but there's no way around charging the assessment.