Approval of the Budget

[Lorna Eadie Hocking]

I am on the Board of a National not for profit organization. Our fiscal year is Jan-Dec. and our operating year is May to May. Our AGM is in May.

Does the Budget have to be approved at the AGM (does RONR state this) or can it be approved at a December General meeting?
 

If it has to be approved at the AGM then the Organization is operating for 4 months without an approved budget…The By -law states that the Budget be presented at the AGM for approval. Could we change the By-law to make it work for this organization?

[Josh Martin]

On 2/9/2022 at 10:36 AM, Lorna Eadie Hocking said:

Does the Budget have to be approved at the AGM (does RONR state this) or can it be approved at a December General meeting?

RONR has no rules on this matter. Even if RONR did say something on this, your bylaws take precedence.

On 2/9/2022 at 10:36 AM, Lorna Eadie Hocking said:

If it has to be approved at the AGM then the Organization is operating for 4 months without an approved budget…The By -law states that the Budget be presented at the AGM for approval. Could we change the By-law to make it work for this organization?

Certainly. The organization is free to amend its bylaws on this matter to set any schedule for approving the budget that is suitable for the organization's needs.

Unless and until the bylaws are amended, however, the current rule in the bylaws must be followed.

Edited February 9, 2022 at 04:44 PM by Josh Martin

[Shmuel Gerber]

On 2/9/2022 at 11:36 AM, Lorna Eadie Hocking said:

If it has to be approved at the AGM then the Organization is operating for 4 months without an approved budget…

Presumably the budget covers a one-year period, so whatever is not covered by a particular annual budget before its adoption at the regular time will have been covered by the previous budget.

But if the organization agrees that the current bylaw provision is not suitable, it can amend the bylaws.