RCSC Board Policy Resolution No. 12 ("BP 12")
Chartered Clubs
WHEREAS Article IV, Section 7 of the Corporate Bylaws empowers the Board of Directors to adopt Policies not in conflict with the Restated Articles of Incorporation (“Articles”) or the Corporate Bylaws (“Bylaws”).
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors (“Board” or “Directors”) of the Recreation Centers of Sun City, Inc. (“RCSC” or “Corporation”) in an effort to maintain and carry out its fiduciary responsibility to its Members, adopts the following Board Policy (“BP” or “Policies”) on January 28, 2010.
NOW, THEREFORE, BE IT RESOLVED that to minimize inconsistencies, misunderstandings and misinterpretations inherent in verbal instructions, rules and regulations, the Board of Directors has established Board Policies in written form. Such Policies shall be titled, numbered and indexed for easy reference and use.
NOW, THEREFORE, BE IT RESOLVED that the Restated Articles of Incorporation and the Corporate Bylaws shall take precedence over Board Policies and that the following Board Policy and corresponding Board Policy No. 12A regarding Chartered Clubs shall provide instruction, direction and guidelines regarding such and shall remain in effect until such time it is amended or removed.
The purpose of Chartered Clubs is to join together and establish social, cultural, recreational enterprises for the benefit of RCSC Cardholders in good standing.
All Chartered Clubs will operate as non-profit organizations under the RCSC group exemption letter with the Internal Revenue Service and therefore hold the same 501(C)4 status.
All Chartered Clubs will be conducted in compliance with the RCSC Restated Articles of Incorporation, Corporate Bylaws and Board Policies.
All Chartered Clubs will file with the Club & Activities Office financial reports for a calendar year on or before January 31 of the following year. These reports will include a balance sheet and a report of financial activity during a calendar year. The Club & Activities Office may prescribe the form or forms to be used for this purpose. In addition, any Club filing a report with any federal, state, or local governmental agency will file a copy of such report with the Club & Activities Office concurrently with the filing of the report to the agency.
Open events should not jeopardize a club’s tax exempt status provided participation by outsiders is not substantial. However, if a club’s primary activity is to conduct events which are open to the public, it may be carrying on business in a manner similar to a for-profit organization and, therefore, may not be exempt under Section 501(C)4. Thus, the Board of Directors must approve all open events.
Bingo is analyzed in the same manner for corporate and tax purposes as any other open event. However, revenue from Bingo is generally not considered unrelated business taxable income IRS 513(F).
All Chartered Clubs are responsible for the timely filing of all other reports required by the RCSC.