[Businessmtg] Prudent Reserve / Donation

[logmark at comcast.net]

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Please focus our discussion further on: 
~percentage versus set amount 
~frequency 
~is there a need to give an amount immediately 
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Biz-Pals, 

  

~percentage versus set amount: 

    

If we have a set Prudent Reserve [we do: one year's 

expenses; currently stated as $1,300 +/-, but variable 

as expenses vary] I see no reason to hold more than 

that amount in our treasury by only donating a portion 

of our Excess Funds by using a percentage. In effect this 

would be increasing ASP's Prudent Reserve beyond our 

current agreement. If our current P.R. is insufficient 

for our group's financial safety (and there is no evidence 

that it is) we should be addressing that problem directly 

not through limiting the donation of our excesses. 

  

~frequency: 

  

Often groups let funds languish in their treasury until there 

is enough money to make one big donation. Meanwhile Districts, 

Areas, or world-wide service can be in need of funding. I see 

no reason to let money sit for long periods in our treasury. 

I believe quarterly donations are reasonable for ASP. 

  

In addition believe that the Treasurer should be authorized to 

follow a clear ASP policy regarding donations without having to seek 

quarterly approval from the Business Meeting. A quarterly report 

to the full ASP membership list should be sufficient, provided 

that the donation can be verified by the List Administrator or 

Secretary through independent means. 

  

~is there a need to give an amount immediately: 

  

Yes. 

  

As ASP's past treasurer with 5 years in office I know that we have 

held funds over our set Prudent Reserve year after year after year 

because of a lack of agreement on where these funds should and should 

not go. There never has been a significant disagreement on whether 

or not donations should be made. 

  

Just because ASP's Business Meeting has been unable [for the better part 

of a decade!] to arrive at a policy regarding where our donations are to 

go does not, in my mind, relieve us of our past consensus to donate. 

  

It is my position that ASP needs to make full amends for its past inactions 

by donating all of our funds in excess of our agreed-to Prudent Reserve. 

  

At the end of 2012 we had $2,037 in our treasury. Holding back our stated 

Prudent Reserve of $1,301 leaves an Excess Funds amount of $736. In order 

to make full amends I suggest that we send that amount out as a donation in 

short order. If our average actual annual expenses have differed from our 

agreed-to P.R. amount I would have no problem using that figure rather than 

the $1,301 figure to arrive at a donation amount which would make our amends. 

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Once ASP has made these amends, I believe that ASP's financial policies 

should be altered to include, 1) one-year's basic expenses as a Prudent Reserve 

(only that amount necessary to keep our doors open) PLUS 2) a small Operating Fund 

for regular expenses and projected or unexpected expenses for the near future. 

I could see this Operating Fund being in the neighborhood of $300 - $500 annually. 

That way the money would be there to pay for our monthly bills, our post office box, 

and buy Beginner's Packets or new software without ever having to dip into our 

Prudent Reserve. Future donations would be made considering both our Prudent Reserve 

amount and our Operating Fund balances. 

  

Too, any new ASP activities should only be approved after having considered 

the willingness and ability of the ASP membership to support them financially. 

Otherwise we could put ourselves in the position of not fulfilling our primary 

obligations of being fully self-supporting AND  financially supportive of appropriate 

Al-Anon service structures. 

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Jerry 

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