scouts-l Mail Archive for March of 2000: Re: Switching Charter Organization, why not !!??
Paul S. Wolf (PaulWolf@CUYCTYENGINEERS.ORG
Tue Mar 28 2000 - 08:01:44 CST
Darryl Hammill wrote:
> Of course, you are assuming that the CO has invested money and bought
> equipment. As for the money in the bank account, I have often
> wondered as Non-Profit organizations how some Units carry money over
> from year to year anyway. Out Troop essentially tries to zero out each
> year. The equipment each Scout used, in out Unit, is theirs - not the
Darryl, that's a common mis-conception. I'm no accountant or lawyer,
but I know that there is NO need for a non-profit to "zero-out" their
accounts each year. In fact it's a very poor practice. So long as the
organization isn't distributing it's assets to its members, it can
retain excess income for future use.
Simple example: A Non-profit cemetery collects "perpetual care" charges
as part of the fee when someone is buried. That money is invested, not
spent. Only the INCOME from the investment is used to maintain the
Another example, the US Scouting Service Project is a not-for-profit
corporation. We own a computer which is used to host our web-site. We
also sell CD's and other items to provide income to our organization.
We don't "zero-out" our accounts every year. We invest the money or
bank it, to allow us to purchase new equipment, as we've done recently.
We ALSO donate portions of our income to Scouting in some fashion. This
year we endowed a "James E. West Fellowship" in honor of someone near
and dear to this e-mail list by making a donation to his council's
endowment fund in his honor, and we made a donation to BSA for an Eagle
Scout Scholarship. But we sure won't bring our balance down to zero.
I would wager that 99% of all troops have bought equipment, using money
donated to the troop. (tents, cook gear, axes, literature, flags, etc.)
Does your troop own NOTHING of those types?
If, in the case sited earlier in this thread, the current Chartering
Org. has no objection, they can allow the unit to transfer it's charter
and allow the assets to go with them to a new organization. This
frequently happens when a new administration takes over and/or interest
in sponsoring a troop has waned. They can also require the assets to
remain behind, in hopes of chartering a new group in the future, but
that happens far less often.
Paul S. Wolf, PE mailto:Paul.S.Wolf@alum.wpi.edu
Advancement/Safety Webmaster, USSSP http://www.usscouts.org