The Altshuller Institute

for TRIZ Studies

ARTICLE III

FINANCIAL

 

Section 1 – Fiscal Year

 

The Corporation fiscal year shall begin on January 1 and shall end on December 31 of the same calendar year.

 

Section 2 – Dues

2.1 Dues and collection procedures shall be determined by the Board of Directors from time

     to time.

2.2 Honorary Members and Past Presidents shall be exempt from Corporation dues for

     lifetime.

 

Section 3 – Contributions

 

Acceptance of contributions to the Corporation shall be in accordance with the Corporation's Policies and Procedure to be adopted by the Board of Directors as they nay amend from time to time ("Policies and Procedures").

 

Section 4 – Dissolution

 

Dissolution of the Corporation shall not be considered by the Board of Directors as long as the following condition exists:

4.1 At least twenty-five (25) members desire its continued existence and intend to administer the corporation affairs.

 

If the Corporation is dissolved, its net assets after discharging all financial, legal, and moral obligations shall be disposed of exclusively for the purposes of AI to such organization or organizations that are organized and operated exclusively for charitable, educational, religious, or scientific purposes and shall, at the time, qualify as an exempt organization or organizations under section 501©(3) of the Internal Revenue Code. Organization or organizations must be recommended by the Board of Directors, subject to the laws of the Commonwealth of Massachusetts.

 

Section 5 – Preservation of Tax Exempt Status

 

The Corporation shall govern its activities to preserve its tax-exempt status in accordance with the definition of Internal Revenue Code Section 501(c) (3).

5.1 No substantial part of AI's activities, funds, property, or income will be used to carry on

     political activity, or in attempting to influence legislation.

5.2 Neither AI, nor its officers or directors, in their capacity as officers and directors of AI, shall

     contribute to any political party or candidate for elective public office.

5.3 AI shall operate, receive, hold, use, and dispose of funds and property in the furtherance of

     its tax-exempt status.

5.4 No part of AI's net earnings or assets shall inure to the benefit of any private individual or

     other person having a personal and private interest in AI's activities. AI is authorized to pay

     reasonable compensation for necessary services actually rendered, royalty and licensing

     agreements as authorized by the Board of Directors.

5.5 AI shall not pay any dividends or pecuniary profits or liquidation dividends or distributions.

 

Section 6 – Financial Reporting

 

The Corporation shall be operated in a prudent manner with due diligence taken by the Board of Directors to the maintenance of its financial soundness. Specifically, the Board of Directors shall ensure that an annual financial report is conducted by a qualified third party under the auspices of the Audit Committee and reported to the Board of Directors for approval.

The financial reporting for the activities of all member units shall be submitted within 60 calendar days of the close of the Corporation's fiscal year, and shall be included in the consolidated financial statement for the Corporation. Member units that fail to comply with this requirement are subject to actions specified in the Corporation's Policies and Procedures.