Sandpipers Reserve Fund Policy
- Purpose: The Reserve Fund serves as a financial cushion against unexpected events or disasters, such as hurricanes, pandemics, or temporary operational suspensions. It is intended to address temporary issues rather than structural financial problems, income shortfalls, or ongoing budget gaps.
- Dissolution Clause: In the event of a permanent shutdown, the fund will be used to settle outstanding obligations (e.g., website fees, legal/audit fees, and other administrative costs). Any remaining balance will be distributed equally among current members in good standing.
- Target Balance: The target reserve amount is equivalent to one full year of the Club's operating budget.
- Replenishment: Any funds used from the reserve must be replenished within 12 months.
- Funding & Investment: The reserve is funded through unrestricted operating revenue and should be held in an interest-bearing account, such as a Money Market or Certificate of Deposit (CD).
- Authorization: Use of the fund requires Board of Directors approval via a vote at a monthly meeting or an email request sent to all members by the President or Treasurer.
- Reporting: The Treasurer will provide updates at monthly Board meetings regarding any fund usage and the timeline for replenishment.
- Review: This policy shall be reviewed by the Board and an accountant at least every two to three years to determine if updates are necessary.
