Club charters?

[Anonymous]

I’m investigating starting a small model railroad club, about 20 members or so, and I wonder if anyone out there has a copy of a club charter I could take a look at? I’m interested to know how division of expenses is handled.

Thanks,
Ted

[cacole]

I'm not sure what you are looking for when you mention the club charter, but at the Cochise & Western Model Railroad Club we charge a monthly membership fee of $10 for adults, $5 for children under 18, and $15 for a family. If we encounter a major expense, such as having to put a new roof on the clubhouse like we did two years ago, a special assessment or donations are requested from members to cover the expenses if there is not enough money in the treasury. Our monthly expenses are water, electricity, rent, and pro-rated property taxes, and we have an annual liability insurance premium. We have been lucky so far to have a very benevolent member who has paid for the roof and other items as a flat-out donation, instead of having to assess charges to the other members. How much you will need to take in each month in the form of membership fees depends on anticipated expenses. Something you might consider is setting membership fees at $10 per member per month initially, and then adjusting as necessary by a vote of the membership. Something that needs to be considered, too, is incorporating to relieve yourself and other members of personal liability in the event you hold an open house and someone is injured on the premises, or a club member is injured through misuse of a power tool during a construction project. Without these protections, holding an open house to entice new members is risky. Our club charter are Articles of Incorporation that were drawn up by an attorney and approved by the State Corporation Commission. This can be expensive, but in the long run can actually save you and other club members the grief of a lawsuit

[Anonymous]

Cacole,
That’s the kind of information I was looking for. I’m just starting to look into the idea of forming a club, having realized that I will never have space for a layout, and I need to get a pretty good idea of everything that is involved. One of the things I’m wondering about is how other clubs handle division of club assets if the group dissolves in whole or in part. For example, if the group starts with 10 guys, and 6 months into building the layout one of them wants to leave and lays claim to part of the layout, how is that handled? Should I even worry about that?

[cacole]

In our case, the layout belongs to the club and any member who puts a personal item on it, such as a building, it is with the understanding that if that item is fastened down in any way, it becomes club property. Locomotives and rolling stock belong to members and may be removed at any time, and we require members to mark their items in some way to prove ownership; but bridges, buildings, trees, figures, etc. belong to the club once they are glued, screwed, etc. in place on the layout, and this is stated in the Operating Procedures, which supplement the Constitution and By Laws, and are equivalent to a military Standing Operating Procedures, if you are familiar with the term SOP. The SOP was drafted up by a committee, and includes minute details which need to be outlined but do not fit into your Constitution and By Laws. Keep the Constitution and By Laws as generic as possible, and spell out who does what and to whom in the form of an SOP. The Constitution and By Laws have to be submitted to the State and IRS in order to receive official recognition as a not-for-profit organization, but the SOP does not. The SOP doesn't even need to be voted on and approved by the membership. State of Arizona incorporation cost $35 and IRS filing was $175. Also, if you incorporate, you must have five club officer positiions -- a President, Vice President, Treasurer, Secretary, and, in our case, an Assistant Secretary. Officers are elected annually by a vote of the membership. Give me your e-mail address and I can forward a copy of our Constitution and By Laws, and SOP, to you for information.

[Anonymous]

I see you are pretty familar with this subject! This seems like it is going to be complicated, but I'm not ready to give up yet. Is there any place I could get copies of some club's Operating Procedures, Constitution and By Laws so I can plagiarize them? (Never do your own work when you can copy someone else's, that's what I always say!)[:D]

Cacole, e-mail addy is on the way. Thanks!

[Anonymous]

i will try to find out from the guy that handles money in are club.

[Anonymous]

I was one of the founding members of our club, I believe we got access to some generic documents at a place like Office Max . Personally, we had ten guys who sat around once a week or two and hashed out the laws of the club, ALLWAYS keeping in mind the idea of covering the clubs behind in the case of property and liability. You will have to get incorporated, get a tax number for the clubs bank account, and get insurance, just to cover the club for financial liability. I will look around, it's been 12 years but I might have something laying around.