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-   -   501c3 rules and regulations (https://www.askmehelpdesk.com/showthread.php?t=810896)

  • Apr 22, 2015, 07:17 PM
    darneitall
    501c3 rules and regulations
    I am on the Board of a 501c3 organization - Citizen Police Academy Alumni Association in Texas.
    1. Can a husband and wife be on the Board?
    2. Can the police department Liaison be on the Board?
    3. Can the Association give money to the police department for holiday parties and recognition banquets without knowing what the money is spent on? Not the Association Mission.
    4. Can one spouse be on the Board and the other be the Liaison.
    5. Can some Board Members deny access to records by another Board Member.
    6. Can the specific duties of a Board Member be given to another (no just cause).
    7. Can the ByLaws be revised in a piece-meal manner?
    9. Can the Board decide the name of the Association without letting the Members vote?
  • Apr 22, 2015, 07:22 PM
    darneitall
    Can a 501c3 Association Board Member remove items from the agenda so Members won't kn
    Can a 501c3 association board member remove items from the agenda just because they don't want them on it?
  • Apr 23, 2015, 03:44 AM
    joypulv
    Goodness, you have what sounds like a typical 'fun fund' disguised as a 501c3. Happens all the time, not that I like it, but it's the American way. I presume this was to be more of a disabled cop, widows, and orphans mission.
    And your board sounds like a mess. Too much conflict of interest. Boards are supposed to be diverse, outsiders.

    I'm not an expert on boards, but to me it looks like you are all on your own duking this out. Denying records (of the assoc, presumably) to others on the board seems clearly a violation. And once an agenda is voted on, it shouldn't be changed. Some of the rest looks pretty 'wrong' too, or in grey areas, but you either need to get support from others on the board, or hire a lawyer. E.g, it's OK to give money without an accounting, but it should be within the mission statement.

    You could threaten to turn the assoc in to the IRS, but they will just vote you off the board next time, and the IRS has their hands full.
    You could also just spread the word among contributors, funds will dry up, and that's that.

    http://www.independentsector.org/principles
  • Apr 23, 2015, 04:45 AM
    talaniman
    Here are some guideline and rules,

    Rules & Regulations of Nonprofit Organizations

    501C3 Rules (with Pictures) | eHow

    As you see the tax status has nothing to do with performance, or general structure, and there is a lot of wiggle room for all kinds of agendas. If you don't like what your group does, speak out, or leave... or BOTH!
  • Apr 23, 2015, 06:43 AM
    AK lawyer
    While Section 501(c) (3) is a part of the federal tax code, OP's questions are mainly a matter of state (of Texas, in this case) law. OP should consult the Texas non-profit corporation statute, and the organization's by-laws, to determine the answers to the questions.

    Many of the questions can be resolved in that manner. Some of the questions can be addressed as follows:

    Quote:

    5. Can some Board Members deny access to records by another Board Member.
    Probably not. But it is probably an officer, not a board member as such, who has these records.

    Quote:

    6. Can the specific duties of a Board Member be given to another (no just cause).
    Specific duties as set out in the by-laws? Have the by-laws been duly so changed?

    Quote:

    7. Can the ByLaws be revised in a piece-meal manner?
    The statute should have minimum requirements for notice, etc., of how they can be amended.

    Quote:

    9. Can the Board decide the name of the Association without letting the Members vote?
    Again, depends on the terms of the by-laws.

    Quote:

    Can a 501c3 association board member remove items from the agenda just because they don't want them on it?
    This appears to be a matter of parliamentary rule as perhaps modify by by-laws. Is this member also an officer?
  • Apr 23, 2015, 07:02 AM
    ebaines
    The answers to each one of your questions is yes. More specifically:

    1. Spouses may serve on the board together, though in general it's bad practice.
    2. The board may include employees of the police dept (I assume that's what a liaison is). But please verify that the liaison isn't paid by the association or receive benefits from it, because that would be an issue. It would be possible to classify the liaison as an ex-officio board member, as long as the by-laws define that role.
    3. The association can give money to whomever, though it may not grant money that will directly benefit any board member. Presumably there is a budget that is voted on and approved by the board that covers this expense, and if it's not in the budget then there should be a separate board vote to approve it.
    4. Yes - see above (again, assuming the liaison receives no benefits from the association).
    5. Depends on what records you are talking about. Some records may be confidential - employee performance reviews and salary for example. Financial records should not be withheld from any board ember who asks for them.
    6. Depends on what the by-laws say are the duties of various officers, and what authority the chair person has for assigning tasks to board members.
    7. By-laws can be revised in accordance with the process defined in the by-laws. What do you mean by "piece meal?"
    8. Name change I believe can be accomplished with a board vote, by-law change, and proper filing with the Secretary of State.

    Regarding your last question about the agenda - I would assume the board meeting agenda is set by the chairperson. The last agenda item should be a motion for adjournment, so if there is a topic you want to bring up you can certainly do it then.

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