LMCP_Lodge Finance

future repair, maintenance, and improvement of the hall. For example, the roof will one day need to be replaced and other capital improvements will be needed. If building reserves are sufficient, a lodge may choose to use the funds, or some of the funds, for lodge use. It’s important for these funds to be properly accounted for so it is clear which funds are for the building preservation and which funds are available for lodge use. A lodge must have a signed agreement with the hall describing what the hall must distribute in the form of a dividend each year and the amounts a hall may withhold from the annual dividend for normal operations. The CMC allows up to three months of operating expenses to be withheld from the annual dividend to the lodge. If a lodge does not have a current agreement on file outlining the terms and duration of the agreement, the hall will automatically lose its Federal Tax Exemption if the IRS inquires during an audit. The use of a standing resolution by the lodge will satisfy this requirement.

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