What happens to the assets of a unit if it folds and doesn’t re-charter?
Camping Gear, Bank Account etc.
What happens to the assets of a unit if it folds and doesn’t re-charter?
I’d have to dig up the exact reference, but unit assets are property of the chartering organization. They are the organization’s to dispose of as it sees fit.
That used be 100% the story, it it is a bit muddier now. Any assets that were purchased by funds raised in the name of Scouting must be redeployed for use by Scouting. Any assets obtained by the CO or parents, the CO and council agree with disposition.
“In the event of the dissolution of a unit or the revocation or lapse of its charter, unit funds and assets must be used to first satisfy any outstanding unit obligations. Any remaining assets obtained with funds raised in the name of Scouting must be redeployed for Scouting use in the local area. Any assets obtained with funds from the chartered organization or parents of registered members may be redeployed as agreed upon by the chartered organization and local council.”
That’s a messy change that seems to have been made without much fanfare. One wonders exactly how that gets implemented without lawyers in the middle of it. And councils wonder why units aren’t interested in participating in fundraisers…
I totally agree. In another forum I answered like you, it is the CO’s. Someone then quoted from the new rules and regs passed in June of 2020. I think if you go back to 2019, it says it is up to the CO.
In our case we just got all the equipment from a dissolved unit donated to ours.
Actually, the change took place awhile ago. June 2018 has the same wording. It is not included in the list of 2018 changes, so the change was 2015, 2016 or 2017.
The 2011 and 2014 versions have the following wording:
RULES AND REGULATIONS, page 17
Article XI, Section 2
(b) Unit Obligations. In the event of the dissolution of a unit or the revocation or lapse of its charter, the unit committee shall apply unit funds and property to the payment of unit obligations and shall turn over the surplus, if any, to the local council, if there is one, or if there is no local council, dispose of the same in accordance with the direction of the Executive Board of the Boy Scouts of America. In the case of a chartered organization, any funds or equipment which may have been secured as property of the unit shall be held in trust by the chartering organization or the chartered local council, as may be agreed upon, pending reorganization of the unit or for the promotion of the program of the Boy Scouts of America. (underline added)
The old wording did not leave the unit’s resources totally at the discretion of the chartered organization. Instead, the resources are to be used to promote scouting, either at a later date or somehow with a current unit(s).
The new wording allows for the possibility that resources acquired because of the Chartered organization and not just scouting can be used for non-scouting things; but the local council has veto power.
In neither case are the unit’s assets unrestricted for the CO to dispose of.
Thanks for the research!
My experience is that a CO that no longer has a unit has no need for tents or a pinewood derby track and would be glad to redirect those items to an existing unit. There’s probably exceptions in practice.
That’s my take too, especially seeing the evolution of this.
If the common belief used to be that the unit’s “stuff” was up to the CO to deal with, in practice, many COs were probably more than happy to transition materials and assets to a new unit. (I know that happened with mine.) Pinewood derby tracks and tents are not easy to repurpose.
The new wording makes it far more explicit that the CO and council should agree on the distribution. As part of that process, there is a form (of course) that needs to be filed when a unit dissolves - which many council/district/unit/CO parties need to sign - and this question is a key part of that form.
Just work it into the unit bylaws. Something like this:
ARTICLE XI. Dissolution
Upon dissolution of the troop, assets will be distributed to the charter organization or to another Scouts BSA Troop at the discretion of the charter organization.
Many years ago, we had a Pack fold in our District. Being that their CO was not one that Chartered other units they allowed the unit leadership to make an announcement at the District Roundtable. They had Blue and Gold decorations and a Pinewood Derby Pack. A couple Packs benefitted from their folding.
I don’t know that that changes anything. BSA and your CO rules supersede any pack rules.
If there are specific BSA and CO rules, they would take precedent. But if there are specific BSA and CO roles, there would be no need for this discussion.
As @Matt.Johnson pointed out earlier in the thread, there are BSA rules in place that deal with this.
Strangely, we started a troop about 18 years ago. When we went to the council to set up our accounts, etc., and there was already 1500.00 or so in the troop account. Our unit number had previously existed and folded at some point, and their funds just showed up in our account!
There is what should happen, and what does happen. Things should happen per the rules, and in many cases resources will be given to other local units or to the Council to redistribute. We had a donation to our Pack of funds from a former CO (a local Womens Club) with a unit that folded in a rather messy way that took a while to settle out the finances, but when it was all done they had a positive balance that they wanted to go back to Scouting. There are unfortunately other non Scout like stories of units changing COs and the CO giving away their gear rather than letting them take it. Part of how the rules are enforced will depend on how hard a Council decides to fight, and sometimes trying to enforce them can get messy and worse for Scouting PR than letting it go.
In my council most COs look to give the equipment away. Like @DavidFreeborn my unit received equipment from a folded unit. The money is supposed to be turned in to Council office after satisfying any outstanding debts. Other units (often new) can then get that money with a release letter from the original CO.
See, this is something I conmpletely disagree with! The unit’s money and gear don’t belong to the Council, no matter how much the Council wants to use it to start another unit. It ALL BELONGS TO THE CHARTERED ORGANIZATION. Believe me, I have run into Unit Scouting Execs that were utterly uninterested in helping rebuild my Pack, but were falling all over themselves trying to get their grubby hands on our Pinewood Derby kit and the money in the unit’s bank account, so they could kickstart another unit down the street.
The bottom line is that the Council cannot do anything with the unit’s assets without the Chartered Organization’s approval.
Steve - that isn’t true. The assets that were obtained/raised in the name of Scouting, are not the Chartered org’s assets and “must be redeployed for Scouting use in the local area”. No approval needed. The only assets the council needs approval/agreement on are the ones that were “obtained with funds from the chartered organization or parents of registered members”.