November 13, 2006
A Need to Know Basis
Our church leaders provide a financial summery sheet to anyone who requests it. However, I wanted to see more detailed financial information including approved budgets with specific line items, such as individual staff salaries. The chairman of the elders turned down my request because he couldn’t be sure how I would use the financial information and that my use of such financial information would not “glorify God”. With paranoia stirring in my head I just had to ask if this applied only to me, or to others as well. I was told that others could have the information on a need-to-know basis, for instance “if they were an elder candidate wanting more specifics.” It’s interesting that government entities publish their financial records, including individual salaries, in the newspaper, yet the church restricts its accounting to a need-to-know basis. I think I now know all that I need to know.
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Gail;
----I disagree with the honorable chairperson of the elders. So do the Colorado Revised Statuates. Your church is a non-profit membership corporation. Please consider my comments to your November 10, 2006 "Casualties of War". Please remind the honorable chairperson of the concept of humility. The Kenworth will arrive, who will survive?
Colorado Revised Statuate:
7-136-102. Inspection of corporate records by members.
Statute text
(1) A member is entitled to inspect and copy, during regular business hours at the nonprofit corporation's principal office, any of the records of the nonprofit corporation described in section 7-136-101 (5) (see note B below) if the member gives the nonprofit corporation written demand at least five business days before the date on which the member wishes to inspect and copy such records.
(2) Pursuant to subsection (5) of this section, a member is entitled to inspect and copy, during regular business hours at a reasonable location stated by the nonprofit corporation, any of the other records of the nonprofit corporation if the member meets the requirements of subsection (3) of this section and gives the nonprofit corporation written demand at least five business days before the date on which the member wishes to inspect and copy such records.
(3) A member may inspect and copy the records described in subsection (2) of this section only if:
(a) The member has been a member for at least three months immediately preceding the demand to inspect or copy or is a member holding at least five percent of the voting power as of the date the demand is made;
(b) The demand is made in good faith and for a proper purpose;
(c) The member describes with reasonable particularity the purpose and the records the member desires to inspect; and
(d) The records are directly connected with the described purpose.
(4) For purposes of this section:
(a) "Member" includes a beneficial owner whose membership interest is held in a voting trust and any other beneficial owner of a membership interest who establishes beneficial ownership.
(b) "Proper purpose" means a purpose reasonably related to the demanding member's interest as a member.
(5) The right of inspection granted by this section may not be abolished or limited by the articles of incorporation or bylaws.
(6) This section does not affect:
(a) The right of a member to inspect records under section 7-127-201;
(b) The right of a member to inspect records to the same extent as any other litigant if the member is in litigation with the nonprofit corporation; or
(c) The power of a court, independent of articles 121 to 137 of this title, to compel the production of corporate records for examination.
History
Source: L. 97: Entire article added, p. 743, § 3, effective July 1, 1998. L. 2003: (2) amended, p. 2351, § 334, effective July 1, 2004.
Annotations
ANNOTATION
Annotations
Expelled member has no standing to inspect the financial records of the nonprofit corporation. Levitt v. Calvary Temple of Denver, 33 P.3d 1227 (Colo. App. 2001).
7-136-101. Corporate records.
Statute text
Note A: regarding the special parameters of paragraph two above, a member can access all other corporate records including:
(2) A nonprofit corporation shall maintain appropriate accounting records
Note B:
Regarding the parameters of paragraph one above, a member can access the following records:
(5) A nonprofit corporation shall keep a copy of each of the following records at its principal office:
(a) Its articles of incorporation;
(b) Its bylaws;
(c) Resolutions adopted by its board of directors relating to the characteristics, qualifications, rights, limitations, and obligations of members or any class or category of members;
(d) The minutes of all members' meetings, and records of all action taken by members without a meeting, for the past three years;
(e) All written communications within the past three years to members generally as members;
(f) A list of the names and business or home addresses of its current directors and officers;
(g) A copy of its most recent annual report pursuant to part 5 of article 90 of this title; and
(h) All financial statements prepared for periods ending during the last three years that a member could have requested under section 7-136-106.
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