COs and Unit Financial Information

[Lynda J 10]

Units are "owned" by the CO. This is the reason that the CO's name is on bank accounts. If the CO decided that they want to drop the troop, all monies belong to the CO as does any equipment purchased with money earned or donated to the unit. Things actually got worked out and another SM took the troop. But is can happen.

 

This happened recently with a unit in our district. There were issues between the SM and the CO. At one point the CO notified the Council that they were pulling the charter. A freeze was placed on the bank account. The trailer and equipment that the unit had purchased with money from fundraisers was retained by the CO.

 

Though I do not forsee any problems with our CO (they have chartered the Pack and Troop for close to 50 years) some of the equipment our troop has actually belongs to adults. I "own" 6 lanterns and 2 camp stoves that the troop is allowed to use. This way it is protected in case something does change.

[nldscout 18]

Again, what I said what happens to funds and equipment when a unit disbands depends on the council, CO, the troop leaders, and depends a lot on the state you live in.

 

Even BSA R&R say that the CO must negotiate with the Council on assest from a disband unit.

 

Sorry folks if you think its simply black and white because its not.

[FScouter 24]

What is the law in your state about a troop or pack disbanding?

[Eamonn 61]

I'm not an attorney, I didn't stay at any motel last night let alone a Holiday Inn Express.

But here is my take on it -Call it Eamonn's Law.

All leaders and adults are listed on the unit charter.

When there is no longer a unit charter, they no longer are a part of the unit.

 

Eamonn.

[LongHaul 10]

Nldscout , no disrespect intended but have you actually read in the BSA R&R that Chartering Organizations must negotiate with BSA on assets of a disbanded unit? My experience and the wording of court documents submitted by BSA when they are sued say that BSA is not a franchise entity. BSA operates on a charter from Congress and enters into Charter agreements with reputable organizations. The Troop Committee Guidebook states Your troop is owned by a chartered organization, which receives a national charter yearly to use the Scouting program as part of its youth work.

The unit is not a separate legal entity. It has no separate tax id. It cant own physical property nor be held liable in a court of law. Individuals can as can the CO but the unit has no physical existence. This I found out when trying to insure our troop trailer and contents. The CO can insure but the unit cant. I dont see how state law can recognize the units right to own property if the unit has legal substance.

We had a case where a very old Pack was disbanded by the CO because some District Unit Commissioner went in and ruffled the Church Elders feathers. The Church was going to take everything but enough community and parish pressure was brought to bear that the unit was allowed to find a new CO and retain everything. Kahunas solution is something to look at if the unit is large or handles large amounts of funds to finance trips and such.

LongHaul

 

[nldscout 18]

Copied from the other thread runnning in forums.

 

Do you see anything that says the CO gets it?

 

 

 

 

Rules and Regulations, Article XI, Section 1, Local Council and Unit Finance Clause 2, Disposition of Unit Funds Upon Termination of Local Council or Unit

 

(b) Unit Obligations. In the event of the dissolution of a unit or the revocation or lapse of its charter, the unit committee shall apply unit funds and property to the payment of unit obligations and shall turn over the surplus, if any, to the local council, if there is one, or if there is no local council, dispose of the same in accordance with the direction of the Executive Board of the Boy Scouts of America. In the case of a chartered organization, any funds or equipment which may have been secured as property of the unit shall be held in trust by the chartering organizaiton or the chartered local council, as may be agreed upon, pending reorganization of the unit or for the promotion of the program of the Boy Scouts of America.

 

[Cubmaster Jerry 10]

This is all very interesting - really it is. But I am amazed at the disparity in (1) the application of BSA policies or (2) the understanding of them.

 

Does the R&R quote entered by nldscout contradict itself? What is the difference between "unit funds and property" in the first sentence that is turned over to Council and "any funds or equipment which may have been secured as property of the unit" as written in the last sentence that goes to the CO?

 

Jerry

[FScouter 24]

Perhaps more to the point, where is there any support for the idea that the former unit members are entitled to divvy up the spoils amongst themselves?

[nldscout 18]

Well I never said that the unit leaders could keep the funds or equipment them selves. It should be disposed of IAW local laws and BSA R&R, plain and simple.

 

My choice, and our plan here is to disperse assest to other troops in the area, including funds. This would go to troops our members joined if we should fold.

[Eamonn 61]

"I created a non-profit 501©(3)corporation"

I'm not trying to be a smart Alec Really I'm not!!

But if you are operating as a 501 ©(3)corporation, is there an agreement with the corporation and the BSA? As there is with a CO?

Wouldn't this really cloud the waters in the case of something going very wrong? The BSA covers the CO and the leaders with insurance, but if you are a unidentified corporation aren't you leaving the officers of that corporation wide open without any insurance?

No I'm not a lawyer and I didn't spend the night at a Holiday Inn Express -I'm just asking!!

Eamonn.