Amendment or suspension of Rule

[Jay M]

We have the following rule in our bylaws :"Annual contribution by HTGC into the Trust Fund: In addition to clearly designated Trust Fund cash donations, HTGC shall place into the Trust Fund an amount not less than 10% of its monthly gross cash receipts. This money shall be transferred each month into the Trust Fund account. This contribution may be increased by the Board of Trustees."

Now the board wants to exempt certain type of donations from  collecting 10%  of Trust Fund. I wonder which is the best way to achieve it whether to suspend the rule with 2/3rds majority and pass a resolution or amend the rule ? If you suggest to amend the rule what is the best language should we use?

Thanks in advance

[Josh Martin]

On 7/12/2024 at 12:36 PM, Jay M said:

We have the following rule in our bylaws :"Annual contribution by HTGC into the Trust Fund: In addition to clearly designated Trust Fund cash donations, HTGC shall place into the Trust Fund an amount not less than 10% of its monthly gross cash receipts. This money shall be transferred each month into the Trust Fund account. This contribution may be increased by the Board of Trustees."

Now the board wants to exempt certain type of donations from  collecting 10%  of Trust Fund. I wonder which is the best way to achieve it whether to suspend the rule with 2/3rds majority and pass a resolution or amend the rule ? If you suggest to amend the rule what is the best language should we use?

The rule in question is not in the nature of a rule of order. As such, it cannot be suspended, unless the rule provides for its own suspension.

Therefore, if the board now wishes to exempt certain types of donations from this rule, the rule will either need to be amended to provide for the rule's suspension, or the rule will need to provide that certain types of donations are exempt.

As to the language, I might suggest:

• Add the sentence "The board may exempt certain donations from this requirement by a 2/3 vote." OR
• Add the sentence "[Description of the types of donations] are exempt from this requirement."

I express no view on which of these is preferable and leave that decision to the organization's judgment.

Edited July 12, 2024 at 06:20 PM by Josh Martin

[Jay M]

On 7/12/2024 at 1:19 PM, Josh Martin said:

• Add the sentence "The board may exempt certain donations from this requirement by a 2/3 vote." OR
• Add the sentence "[Description of the types of donations] are exempt from this requirement."

I express no view on which of these is preferable and leave that decision to the organization's judgment.

Thanks Josh for your help!