Purpose

MAEVE reserves the right to limit solicitation of its members and protect the Corporation and its chapters from unaccepted practices for non-profit, tax-exempt organizations. It is important that members not feel pressured to participate in or contribute to any activity that is not related to the operations of the Chapter and that members do not privately benefit. Solicitation may be allowed in Chapter-sponsored events and initiatives, such as blood drives, food drives, fundraising initiatives, etc.

Solicitation

Solicitation includes, but is not limited to: requesting, urging, or obligating anyone to give or pay money to any cause for any reason; requesting support for any cause, including charity, political organization, religious or secular cause; requesting anyone to purchase a product or service from an outside business interest; distributing or posting literature or other announcement-type material without Chapter Board approval.

Private Benefit

Private benefit is a broad concept that applies whenever any individual, whether associated with the organization or not, reaps a benefit that is not within keeping of the exempt purpose of the organization. Private benefit does not have to be financial. The IRS does not see private benefit in absolute terms. It is allowable when it is insubstantial or incidental to the main service being provided. It is not acceptable when a service or a financial transaction is purposefully aimed to benefit an individual or a narrowly defined group rather than the public.

Private Inurement

Private inurement is an important part of private benefit and it happens when an insider — an individual who has significant influence over the organization — enters into an arrangement with the nonprofit and receives benefits greater than she or he provides in return.

Self-Dealing

The Chapter must ensure there is no self-dealing. A nonprofit’s tax privileges rest in part on the principle that the organization is not operated primarily for the benefit of an individual or our members. In a self-dealing transaction, a nonprofit enters into a deal in which someone in a leadership position (a director, officer, or major donor) or their family members or businesses has a material financial interest.