A friend of mine formed a non-profit organization. Over 25+ years, the organization did a lot of good in the business community and the cities it worked with. While focused on the organization's primary purpose, my friend didn't notice the majority of board members had changed. The majority were now employees of the cities they served, not the businesses. The bylaws started to change, activities started to change, membership started to fall off and because the majority of the board members didn't understand how to raise funds, fundraising all but stopped.
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This is when my friend called me and the UNTeam...
Because of my business background and web development skills, I was invited to join the board of directors. Over time we made efforts to get the board to instigate fundraising, membership drives and organized networking mixers that members would be willing to pay to attend.
As it was before, so it continued; The split focus between what the original board members wanted to accomplish and what the new majority board members wanted to do kept the organization at a standstill. The new majority didn't think the original purpose of the organization had any value and even though the organization was formed to lobby for the member base (501c6), the new board wanted to change to a 501c3 so they could "go after all those free grand dollars just sitting out there."
On closer evaluation of the history, articles of incorporation and bylaws, I learned that in 2003, the organization had changed the articles of incorporation to read that even though they function as a 501c3, they would comply with regulations for a 501c3. Digging deeper, we determined this was act of gross negligence on behalf of executive board members who changed the articles. A 501c6 is required to get the vote of all members if there is a chance the organization will be taking services away from these members. Acting as a 501c3 means the organization was no longer allowed to function in support of its members.
The end result...
If you really, want to know, drop me a note. I'll let you buy me a cup of coffee!
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