Summer 2024
As time goes by, the Business Practices Committee is finding fewer and fewer lodges operating the activities of their lodges in accordance with the Grand Lodge Statutes (chapter 13 — LOCAL LODGE COMMITTEES) and Lodge Activities Manual. Many lodges keep saying they must sell alcohol to the public in order to raise money for their lodges. However, the Risk Manager of the Grand Lodge Insurance Department states in their Accident Prevention/Insurance Risk Newsletter (Winter 2022/2023), “The service of alcohol is a privilege the Lodge extends to Members and their guests, not a means of revenue for the Lodge.” It is recommended that every Exalted Ruler and all lodge officers become very familiar with the following references:
- Grand Lodge Statutes (Chapter 13 — LOCAL LODGE COMMITTEES)
- Lodge Activities Manual
- Auditing and Accounting Manual, Chapter 3, paragraph 3-122
- ERs, Officers & Committee Members Manual
- Planning a Special Event Manual
To access these manuals and more, visit elks.org/leadership/manuals.cfm. You must be logged in to access them.
The Lodge Activities Manual states, “It is the responsibility of the Exalted Ruler, other Lodge Officers and all the committees to develop and successfully execute a balanced program of Lodge Activities, including social functions, club activities, and community service projects. The responsibility for planning and managing such a program lies mainly with an appointed Lodge Activities Committee.”
The manual goes on to state, “As the chief administrator of the Lodge, the Exalted Ruler should meet once a month with the Officers and Committee Chairpersons. The importance of these meetings cannot be stressed too greatly! They not only inform the Officers and Committee Chairpersons of what has been planned but also, as brainstorming sessions, they are the best source for new ideas for Lodge activities.”
Appendix B contains a list of suggested lodge activities for lodge meeting, club and social occasions. There are two pages of ideas and many more ideas would come from a brainstorming session. Appendix C has suggested procedures for committee chairpersons and committee members. There are two pages of ideas listed in this appendix.
Paragraph 3-122 — Lodge Activities and Reporting in the Auditing and Accounting Manual has very important procedures that must be followed to have a successful event. “The need for advance planning for any event cannot be over-emphasized. It is important that no event be scheduled unless there is reasonable assurance that a profit will be realized.” Fundraising events and Lodge Activities events are processed differently because of the reporting requirements. “For actual fundraising events it is important to segregate the value of the donation from the value of the ticket purchased. This is necessary to properly prepare the Lodge Federal Form 990.” The paragraph goes on to state, “At the conclusion of the event and as soon as practicable all Revenues should be turned in to the Lodge Secretary for processing. The Committee Chairperson should prepare a report of the results of the event to read at a regular Lodge meeting.”
The Exalted Rulers, Lodge Officers, Committee Members Manual provides the basic responsibilities for all the lodge officers and includes the duties and responsibilities for all committee chairs. For example: “ENTERTAINMENT COMMITTEE: The club operation of the Lodge has its place in the success of the Lodge. Entertainment in a proper environment is an excellent way to involve the membership. A committee devoted to this project is a “must” for Lodges having a club operation.” Exhibit B-1 has a list of statutory committees and subcommittees along with additional committees that the Exalted Ruler could appoint if needed. Why would anyone want to reinvent the wheel? On the Grand Lodge website (elks.org), there is a document called “So You’re Planning to Stage an Event or Activity.” It is recommended to use this guidebook whenever a special event or a fundraiser is being considered. Would it be used for doing a Friday night dinner or a Tuesday Taco night? Not really. But the lodge must make a profit.
The guidebook is divided into seven steps followed by a Special Event Worksheet. It starts with some important items to consider before a decision is made, such as deciding who you want to attract to your function, allowing plenty of preparation time, being aware of major holidays, trying to avoid a conflict with major community events, and deciding which days of the week would get the best attendance.
Step 2: Choosing the best time of day followed by recommendations.
Step 3: Developing an invitation list followed by what should be considered.
Continue with steps 4 through 7. Ensure the Special Event Worksheet is completed, followed by the Completed Project Report, which must be turned in to the Lodge Secretary.
Richard Martin, PDD
Chair Business Practices Committee
Spring 2024
Over the years, members of the Business Practices Committee have observed Elks lodges doing many things in an effort to raise funds for their lodge. This is good, as it takes money to keep the lodge going and to obtain funds to give to our charities. However, we are also seeing many Exalted Rulers and lodge officers putting their lodges at risk.
Each Exalted Ruler took an oath when they were installed and assumed their responsibilities. The “Installation of Officers” in the “Ritual of Local Lodges” manual states, in part, “You will guard the charter as the most important possession of your lodge and you will be vigilant in preserving if for posterity. This you will consider a sacred charge.” When all lodge officers were installed, the “Ritual of Local Lodges” manual stated, in part, “It is your duty to promote the programs of the Grand Lodge and to encourage participation by the members of your lodge in our charitable works.”
Each lodge has a certain amount of risk just serving their members and the guests of Elk members. The Grand Lodge provides an insurance policy, at a cost to the lodge, to cover those risks. The risks increase tremendously when a lodge advertises their lodge is having an event and the public is invited or “open to the public,” which is against the Grand Lodge rules and regulations. The Grand Lodge says, “The order has a closed-door policy; lodges must not be opened to the public and alcohol cannot be served to the public.” In addition, the Grand Lodge “Accident Prevention/Insurance Risk Newsletter, Winter 2022/2023, states, “The service of alcohol is a privilege the lodge extends to members and their guests, not a means of revenue for the lodge.” When a lodge violates the Grand Lodge rules and regulations, the risk to the lodge is extremely high because the Grand Lodge does not provide insurance. If a lodge gets a lawsuit filed against them, the lodge will be held liable. There have been cases where Exalted Rulers and lodge officers went to jail. Why put yourself, your lodge officers and your lodge at risk?
There are ways to reduce some of the risk and one of them is to get a Certificate of Insurance for each event and fundraiser to be held. Because the Exalted Ruler will be held responsible, the Exalted Ruler should be the one who approves all events and fundraisers, ensuring a Certificate of Insurance is obtained for every event prior to scheduling an event. An event or fundraiser should never be held without the approval of the Exalted Ruler.
For additional information, go to the Grand Lodge website (elks.org) and the Business Practices Library on the Florida Elks website (floridaelks.org).
Richard Martin, PDD,
Chair Business Practices Committee
Winter 2024
The mission of the Business Practices Committee is to educate lodge officers in business activities of the lodges in accordance with Grand Lodge statutes, rules and regulations.
In addition to the Grand Lodge statutes, rules and regulations, the committee researches Florida statutes; rules of the Department of Business and Professional Regulations (DBPR); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Division of Alcoholic Beverages and Tobacco (ABT); Florida Department of Health; Internal Revenue Service (IRS); and local rules and regulations that may be applicable.
Resource information has been prepared to assist lodges on numerous subjects and has been placed on the Business Practices section of floridaelks.org to be used at the lodges’ discretion.
There are times when a situation arises that the question is asked, “What if we do something different?” Some might take the position that it is better to ask for forgiveness than to ask for permission. Is the reason this position is taken because the permission might be denied because it might be a violation of a law, rule or regulation? Leaders of the lodges have a responsibility to care for our lodges and its members. NEVER FORGET YOUR OBLIGATION. Failure to follow established laws, rules and regulations carry consequences. Some might be minor and others might be major. Penalties for violations may be monetary or a loss of license(s), or a more severe loss would be the loss of the lodge’s charter.
“What if” is a question that asks someone to imagine what might happen or what might have happened (see English Language Learners Dictionary and Merriam Webster Dictionary). We are all human. Mistakes are made and can be corrected, but deliberate violations are another thing. Taking an easier way out to achieve a goal is not always the best or the most beneficial. When you are faced with a question about a specific topic, you should determine the purpose of the question. Was the question for a clarification of a law, rule or regulation, or was it to find a way to get around it? Try to avoid being put in a position of saying, “What if we had just done what we were supposed to have done instead of looking for a different way?”
The Business Practices Committee is always available to help you stay in compliance with laws, rules and regulations but not to help you find a way to avoid them.
Sonja S. Lopez, PER
Member Business Practices Committee
