Need NPO Budget Advice

[Guest PHutchison]

I belong to a NPO. In April 2024, our Budget Committee met and approved a proposed budget for 2024-2025.  May 2024, the Executive Board approved the

proposed budget without any changes made after discussion.  As per our bylaws, the proposed 2024-2025 budget was sent to members before the May General Meeting for review, and voted on/approved unanimously as proposed at the May Meeting.  There was no concern voiced at either the Executive Board or General Meeting to the proposed budget. After the May Meeting and under a new Executive Board, several members voiced concern about a line item on the approved budget considered too much. The Executive Board held a meeting in July and  "amended" the budget and moved funds from the approved line item to 2 other line items to satisfy complaint of several members.

My question is does the Executive Board have the authority to unilaterally change a budget approved by the elected Budget Committee and membership without taking the issue back to the Budget Committee that proposed the budget, and to membership at its next meeting in September?  This movement of funds does not change the bottom line of the budget.  

Thank you.

[Richard Brown]

On 8/12/2024 at 12:49 PM, Guest PHutchison said:

My question is does the Executive Board have the authority to unilaterally change a budget approved by the elected Budget Committee and membership without taking the issue back to the Budget Committee that proposed the budget, and to membership at its next meeting in September?  This movement of funds does not change the bottom line of the budget.  

The answer to your question depends on the authority and power granted to the executive board in your bylaws.  Normally, a subordinate body such as the executive board cannot modify a decision of the membership.  What, EXACTLY, do your bylaws say about the power of the executive board?  Please quote the provision exactly, don't paraphrase.  It might also be helpful to know what your bylaws say about the adoption (and modification) of a budget

[Richard Brown]

You might take a look at Official Interpretations 2006-12 and 2006-13 on the main website.  Scroll down to # 2006-12 and 13: https://robertsrules.com/official-interpretations/

You will have to click on the little "down arrows" in the upper right of each question to see the answers.

Edited August 12, 2024 at 07:04 PM by Richard Brown

[Gary Novosielski]

On 8/12/2024 at 3:02 PM, Richard Brown said:

You will have to click on the little "down arrows" in the upper right of each question to see the answers.

(A bug, not a feature, in my view.)

The relevant part of that answer says:

In the usual case (where the board is subordinate to the membership of the society), no action can be taken by the board which would conflict with any action taken by the assembly of the society (RONR, 10th ed., p. 466, l. 7-17).

In the 12th edition, this same provision is found at 49:7.

[Richard Brown]

On 8/12/2024 at 2:18 PM, Gary Novosielski said:

The relevant part of that answer says:

You don’t think it’s easy enough for the OP to just click on the link I provided and read both official interpretations for himself? The relevant part of the second official interpretation tells him what the membership can do about it. That’s why I cited both official interpretations. 😊

Another method of correcting the action of the board, if it was in fact an overreach, is for someone to raise a Point of Order, preferably at a general membership meeting, that the action of the board exceeded its authority and is null and void. Hopefully, the chair will rule correctly, but if not, his decision can be appealed to the assembly where it only requires a majority vote to overturn the ruling of the chair.  

However, that method (raising a point of order that the action is invalid) would only be appropriate if the board did in fact exceed the power granted to it in the bylaws.  Reversing the action of the board as discussed in official interpretation 2006–13 is available even if the board did have the power to do what it did.

I think both official interpretations are relevant to the OP’s inquiry. 

Thank you, though, for the citation to the current 12th edition. That is very helpful. I wish the authorship team would update all of the FAQs and official interpretations with citations to the 12th edition
 

Edited August 12, 2024 at 08:14 PM by Richard Brown
Added last sentence

[Gary Novosielski]

On 8/12/2024 at 4:07 PM, Richard Brown said:

You don’t think it’s easy enough for the OP to just click on the link I provided and read both official interpretations for himself?

Yes, I think it's easy enough, although it could be easier if one did not have to search for how to expose the answer.  But it still would not surprise me to learn that he did read them both.  I don't think I did anything to discourage him.  You don't think the short quotation could have motivated him even more?

[Guest Hutchison]

Thank you Richard and Gary for your responses.

In response to Richard's questions of August 12, Our Bylaws read as follows:

ARTICLE VIII- Executive Board 

Section 1 - Members shall be the elected officers of the Club and shall be entitled to attend Executive Board Meetings, make motions, speak in debate and vote.  A majority of members shall constitute a quorum.  

 Section 2 - Advisors are the immediate Past President, GFWC-NC officer and GFWC-NC District 7 President,  and the Parliamentarian.  Advisors shall be welcome to attend Executive Board Meetings and may be recognized by the President to provide information but shall not speak in debate, make motions, and vote. 

Section 5-Committees

A.  Budget Committee shall consist of the Treasurer as chairman, President-elect, one member elected by the Executive Board; and two members elected by the membership at the March Meeting.   An alternate shall be elected by the Executive Board.  The Budget Committee shall develop the proposed annual budget for adoption by the Executive Board and the membership at the May Meeting. 

There is no language in the current bylaws about making changes to an approved budget. 

The last article in our Bylaws reads as follows:

ARTICLE XI- Parliamentary Authority

The rules contained in “Robert’s Rules of Order, Newly Revised” shall govern the Club in all cases to which they do not conflict with these bylaws.

Any further clarification or advice would be deeply appreciated.

Thank you.

 

[Richard Brown]

Guest Hutchinson, thank you for the additional information. The information you provided, though very helpful, does not say anything about the powers of the executive board. Is that mentioned anywhere? 

Based solely on what has been provided so far, it does not appear to me that your executive board has the authority to ignore or change anything decided upon by the membership. The executive board appears to be subordinate to the membership and is bound by decisions of the membership as stated in RONR and the official interpretations that Mr. Novosielski and I referred you to.