Each year, our board members determine the specific percentage of proceeds to donate. Under the organization’s governance structure, every board member holds three votes. For a donation proposal to pass, including setting the donation percentage for that year, it must receive at least seven affirmative votes.

How the process works

• Proposal initiation: Any board member may submit a donation proposal that specifies the recipient(s), rationale, and a recommended percentage of that year’s proceeds to donate.
• Discussion and review: The board schedules a discussion period during which members review financial projections, program impact, and alignment with the organization’s mission. Staff and subject-matter experts may be invited to provide background information and answer questions.
• Voting mechanics: Each board member casts three votes. Votes may be allocated as the member chooses among competing elements of the proposal—for example, all three votes for a single percentage option, or split among options if multiple choices are presented—unless the board’s bylaws require votes to be cast in a single block.
• Threshold for passage: A donation proposal becomes binding if it secures at least seven affirmative votes in total. If the proposal fails to reach seven votes, it does not pass and may be revised and resubmitted.
• Tie and rework procedures: If the initial vote falls short, the board may:
  • Reopen discussion and amend the proposal.
  • Call for an alternative proposal.
  • Defer the decision to a scheduled future meeting.
  The board chair may set timelines for revisions to ensure the donation decision is made in time to be reflected in annual financial planning.
• Implementation and reporting: Once a donation percentage is approved, finance implements the allocation as part of the year’s budget and disbursement schedule. The board requires regular reporting on the disbursed funds’ impact and compliance with the intended use.

Principles guiding percentage-setting

• Financial prudence: The board considers operational needs, reserves, and growth plans to ensure donations are sustainable.
• Mission alignment: Chosen recipients should align with the organization’s values and long-term objectives.
• Transparency: The board documents the decision and the rationale, and publishes summary information so members and stakeholders understand how the donation percentage was determined.
• Flexibility: The voting system allows for nuanced member input through multiple votes, enabling compromise while maintaining a clear pass threshold.

This structure ensures that setting the annual donation percentage is a deliberate, transparent board decision balancing member input, financial responsibility, and mission impact.