Policy on Sale or Distribution of Association Tangible Assets
Adopted: 18 March 2003
Before proceeding with the sale of tools, instruments, or equipment, the Technical Committee shall recommend the sale, after first determining that the WCOARA does own the item, by referring to the WCOARA inventory and the inventory of equipment leased from the KMC Network, and does not need the item for use on another trustee’s system nor for a future planned project. A vote shall be taken by the association membership to confirm that they approve of the sale. Items having a value of $250 or more shall require a written vote using the methods specified in the Constitution and Bylaws, however, items that have been declared by the Technical Committee as excess, by virtue of having been replaced by an alternative item, shall not require a written vote, independent of their value. A vote of the membership may be taken to list an item for sale at any time in advance of the actual sale. In accordance with Subsection 5, Substitute for Voting by Written Ballot, in the Voting Policies and Procedures section of the By-laws, the President may invoke a substitute for a written ballot, when the conditions therein stipulated are met. Items to be sold without a recommendation by the Technical Committee shall require a written vote, irrespective of the value of the item to be sold.
As a nonprofit organization, classified by the Internal Revenue Service (IRS) as a public charity, care must be exercised to assure that our transactions are in accordance with the Internal Revenue Code. In particular, we must avoid even the appearance that members are receiving monetary benefits from their membership in the association. For this reason, items that are sold by the WCOARA shall be treated in the same manner as items that are purchased; namely, a vote should be taken to approve a sale of anything the association owns. Voting on a fair sale price and allowing all members the opportunity to buy association property, or offering that property for sale in a competitive environment, such as the Hamvention flea market, should suffice to remove any appearance of impropriety.