Chapter 261 – Scholarship Committee

A. Cross-references to Some Relevant Rules and Policies

B. Major Policies

1. Purpose. The Scholarship Committee shall advise and make recommendations to staff and the Board regarding the Club’s employee scholarship program. In particular, the Committee shall make an annual recommendation to the General Manager of the individuals to whom scholarships should be awarded and in what amounts.

The primary purpose of the Scholarship Committee is to determine to whom scholarships will be granted, and in what amounts. Its primary purpose is not fundraising, but administration and distribution of the funds members wish to contribute.

2. Specific Rules.

(a) The following solicitations are allowed: (i) one single-page letter enclosed with bills between May 1 and July 31, (ii) an item in at least one of the newsletters published in May, June and July, (iii) a page on the Club’s website with a standard link on the “Member Central” part of the site (without any material change in either the page or the link from their current form), (iv) signs/displays, including QR codes, in a limited number of high-traffic locations throughout the Club, including without limitation in the Racquet Room, in Club lobbies, on electronic message boards, and on table tents on dining tables, all in coordination with Club staff and the Communications Manager, and only between May 1 and July 31 and (v) reasonable solicitations on the Club’s private Facebook group.

5/23/24: Board expanded item (iv). 5/25/23: Board added item (v).

(b) All other solicitations and fundraising activities must be approved in advance by the Board. The following principles will guide the Board in deciding whether to approve any solicitation or fundraising activity:

(i) Such approved activities must occur between May 1 and July 31.

(ii) It may not have any tendency to reduce contributions to the annual holiday fund.

(iii) All solicitations must be private, without any element of public pressure. Examples of public pressure: “raise-the-paddle,” handing out badges to contributors, solicitation at general Club social events such as, but not limited to, the Open House, Fourth of July, Tennis Week, and Men’s and Women’s tennis programs.

(iv) Any sales of goods or services must be of modest items, must be carried out by volunteers, may not impose any material burden on the Club or staff, and may not compete with, interfere with or displace any ordinary Club activity.

(v) Any event (whether or not with an admission charge) must not compete with, interfere with or displace any ordinary Club activity.

(vi) It must be clearly established that none of the funds raised will be non-exempt function income for tax purposes.

(c) Any goal communicated by the Scholarship Committee must be in terms of the number (or percentage) of contributors, without reference to the total amount of contributions or the amounts of any individual contributions.

(d) All solicitations and activities must be accompanied with an express statement (in a conspicuous and easily recognizable format) that contributions or other payments are not deductible for federal income tax purposes as charitable contributions. To the extent there is an applicable IRS safe harbor (pursuant to IRS Notice 88-120 or otherwise), the statement must satisfy the requirements of that safe harbor.

(e) Club members who are employees are not eligible to receive a scholarship grant.

3/23/23: Rule regarding member-employees adopted by the Board of Trustees.

4/25/24: The following fundraising activity was approved for 2024 only:

The Scholarship Committee will organize a pickleball tournament during Tennis Week (morning only on one day), which will (i) be run by Committee volunteers (no staff), (ii) not include any funds from the Club and (iii) not interfere with traditional Tennis Week activities. The Scholarship Committee will require a $30.00 entry fee per person, which will go to the Scholarship Fund.

When members sign up, there will be check boxes by which the member may elect to contribute higher amounts to the Scholarship Fund. Contributions must be optional.

The solicitation of contributions must be accompanied with an express statement (in a conspicuous and easily recognizable format) that contributions or other payments are not deductible for federal income tax purposes as charitable contributions. The word "optional," as used above with regard to a contribution in excess of the entry fee, means (i) such payment is 100% optional, (ii) the payer can enter an event without paying it, (iii) it is clear on the entry form that the payer can enter an event without paying it, (iv) it is not trackable in any way and (v) there’s no distinction between those who pay and those who don’t.

The above approval is time-limited to the 2024 Tennis Week and will not create an ongoing exception or revision. Rather, the request – even if identical – would have to be reviewed by the Board next year and the Board may or may not approve it.

The Board understands that the Club may offer no-host food & beverage service during the pickleball tournament. Club staff will organize, manage, provide and serve all food & beverage offerings, including making pricing, menu and staffing decisions. Food & beverage offerings may include complimentary serving (by staff) of a keg of beer, if the keg is paid for by one or more individual members

6/7/23 and 5/30/22: Similar, though not identical, pickleball events approved for 2022 and 2023 Tennis Week only.

1/26/02: Scholarship program approved by Board of Trustees.

5/26/22: Purpose and specific rules regarding solicitation adopted by the Board of Trustees.

C. Procedures

1. Adoption and Modification. The procedures in Part C may be adopted and modified by resolution of the Scholarship Committee, so long as they are consistent with the major policies in Part B, other Club rules and policies and any action by the Board of Trustees.