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Mr. Varfin Donzo
FELMAUSA: Our Fiduciary Responsibility—a cautionary note to the Board and Executive
By Mamadee Sesay
As FELMAUSA transitions from a plain community organization into a full-fledged 501c 3 community and charitable organization, so too are the responsibilities of the board, executive, and membership. At this moment, besides the bylaws and constitution that govern FELMAUSA, we are now being held to a different standard and expectation than we were one year ago. To remain a trustworthy and useful organization, we have to understand the rules, guidelines and do what is expected of FELMAUSA in the eyes of the Internal Revenue Service (IRS). As a 501c 3 organization, we have obligations that many may be unaware of, or attempt to ignore to the detriment of the future of FELMAUSA.
It is therefore on the basis of these changes, along with our legal responsibility and long term benefit of FELMAUSA maintaining her status as a 501c-3 organization that this cautionary note is presented to the executive, board, membership and prospective donors through this public medium.
The current state of affairs and disagreements about who has authority to make and implement policies, is happening at a time of collective endeavor in making sure that one of the many positive impacts we envisioned for FELMAUSA years back takes place with the blessing of each and every member, especially those in charge of making final decisions as per our constitution and other legal compulsion. We should be mindful that in the process of doing good for our people and country, we must always look forward to a continuation of similar efforts in the future without hindrance because of present actions that would make such impediments possible.
Buying into the notion that anything minute or substantial can be carried out in the name of FELMAUSA without the full involvement of the board, executive and the general membership is synonymous to undermining the very foundation, vision and mission that were crafted when FELMAUSA came into being. In an environment where inclusiveness and working together for a common purpose becomes curse words, progress is unattainable. Pointing at and interpreting the constitution to align with individual disposition pose an unforgiving problem for FELMAUSA now and in the very near future.
It is thus the responsibility of each member, who fears that a looming crisis is sure to direct FELMAUSA in a wrong path, to call on our leaders to lead not from an emotional position, but a position that influences and rallies members to a worthy and admirable venture such as the Medical Mission. It is very evident that any critique, be it sincere or not in this current state, may be perceived or characterized as not being in favor of the mission. At the end, however, a positive assessment to protect FELMAUSA’s future should never be missed.
In keeping with the above mentioned, let me present here that becoming a 501c-3 organization comes with advantages and disadvantages. The advantages for FELMAUSA are that we are exempted from Federal Income Tax as well as State in most cases, those who donate can deduct their donations on their taxes. One of the essential advantages is that FELMAUSA can now apply for grants from government and private institutions including foundations. We have the opportunity to get a break for bulk mailing, a cost that adds up in the event of fundraising activities. The most important of these advantages is the credibility accorded FELMAUSA in the minds of community members and external communities.
Nonetheless, as rosy as these advantages sound, FELMAUSA too has responsibilities to fulfill if we are to continue enjoying these benefits. The level of control we had became limited on the day we got approved as a non-profit organization. We are under obligation to document our activities, keep adequate records that would allow us to file the required tax documents with Federal and State authorities. Because FELMAUS A’s activities are not meant to promote or protect the interest of one individual other than that of the public, all of our documents, finances, projects, mission and vision statements to name a few, must be made public with no strings attached. It is even required that when these documents are requested by anyone, be it member or not, they must be provided within the legal framework of the law.
Consequently, the way and manner of executing policies in FELMAUSA changed on the day our status changed. It means that there can be no instantaneous decision making and policy implementation, particularly those that are out of the authority of the claimer. As worthy as any cause may be, the prudent thing to do is that it should be done right. Doing what we have always done, disregarding the constitution, yields what we have always gotten: disunity, dissolution or total lack of interest in a well intended organization.
My cautionary note to the board, executive and the general membership is that FELMAUSA, like all other non-profits, is an authorized organization that must operate within the boundaries of the law. FELMASUA’s status as a 501c-3 could yield us unending benefits and credibility depending on how it is utilized. The prevailing situation in FELMAUSA is likely to put it on the track of having its 501c-3 revoked.
While it is accurate to say that FELMAUSA’s liability is limited to its assets, and that personally no single person can be held liable, there are exception in reference to the board of directors. With anticipation that board protects organization and public interest, failure on their part to avert harm coming to the organization could leave them legally liable for such inaction. It is important that board members understand that their commitment is to FELMAUSA, and they need to go the extra mile to protect her interest and not individual interest.
The executive must be cognizant of the fact that as implementers of FELMAUSA’s policies, they have to work with the board not for the reason that they like or dislike each other, but that the life of FELMAUSA lies in their ability to corporate. Along the line, these two bodies will have to come together to compile a document that goes to the Internal Revenue Service so that FELMAUSA can be in compliance with her 501c-3 agreement with the government. Let us be reminded that in filing form 990 or form 990-W, which we have to, it is not possible that either body can submit these documents without the signature of the other. There are pointed questions on these forms that must be answered in the affirmative or otherwise. Any affirmation must hold true for the board as well as the executive.
Hence, it is unthinkable that anyone who shares the vision and mission of FELMAUSA, and sincerely believes that the only movement FELMAUSA can make is a forward movement can never be against any projects like the education assistance program or the medical mission. It is also unimaginable to conclude that simply because a project is worthy means that it should be improperly implemented by turning a blind eye to the basic and fundamental aspect of any project—the proposal. In addition to a proposal being a pre-requisite, it is a way to show accountability through a detailed explanation about cost, rationale, determination of beneficiaries, impact and sustainability of project in the long run.
In the absence of a project proposal, it would make it difficult for the board of directors to be at fault if it refuses to affix its signature to a future form 990 or 990-W, especially when figures members were not privileged to evaluate or approve are represented on these forms. Such reality is only a matter of time before it manifests itself, at which time FELMAUSA could be in violation of the filing code and possibly fine along with the 501c-3 withdrawn.
The burden to ward off such fate lies squarely in the hands of the executive, board and membership. We still have time to do what is right and realize that the functions of these separate FELMAUSA organs can make or break this noble organization. At least, we have been warned