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Proposal Details

Proposal ID	626
Proposal	Amend Fiscal Policy to Eliminate State Sharing
Presenter	Finance Committee and Fundraising Committee
Floor Manager	Susan Chunco
Phase	Closed - Adopted
Discussion	10-31-2011 - 11-13-2011
Voting	11-14-2011 - 11-20-2011
Presens Quorum	Two Thirds of Active Accredited States/Caucuses
Consens Quorum	Two Thirds of Yes and No Votes

Background

Why the Current State-Sharing Program Must Be Ended

The current model of state-sharing fosters the idea that fundraising by
states and the national party is a zero-sum game. This is wrong; it should
never be treated as a zero-sum game between GPUS and the states.

In the case of the Green Party, our assigning of a percentage of each
donation to either the national or state parties has created a false sense
that we were limiting the amount of money that could go to each
organization. In fact, if someone is capable of donating $10, $50, $100, or
even $1,000, they are also capable of further donations of similar value to
different organizations. The research on middle class giving shows that
people give similar amounts of money across a variety of organizations.
That is why non-profits guard their lists so carefully.

Let's be frank. The Green Party has an unfortunate history of poor
communication between the national party and the states. We can, we must,
and we will correct this. There is no need for either the national or
state parties to guard their donor lists from each other. Sharing donor
lists will increase the likelihood of each donor supporting both
organizations.

The current state-sharing model fosters a dependency within state parties
for national state-sharing funds. Several state parties were even told not
to engage in their own fund-raising. What a mistake! State Green parties
need to fundraise effectively on their own. The stronger the state parties
and national party are when they fundraise separately, the more effective
they will be at fundraising jointly.

The reality is that state-sharing is currently dependent on the donor's
checking of a box. The donor chooses to participate in the program. But
currently neither states nor the national party encourage donors to check
that box. Energy will be better spent if the national party assists states
with their own fundraising. The Fundraiser plans to:

1) train states how to do mailings and phone banking;

2) provide support services to states by writing phone banking
scripts and fundraising letters, and giving states access to the GPUS donor database; and

3) collaborating on fundraising projects as states request.

In addition, GPUS will assist states in learning to comply with FEC filing regulations and filing procedures. Support will include maintaining a list serve for state treasurers.

Normal practice dictates that the national party should be funding programs
which directly benefit state and local parties, and individual campaigns.
Creating an obligation on every donation is inherently limiting to both the
state and national parties. There should be no obligation on states to
share funds with the national party. Far better to work on a collaborative
model that properly funds our programs at all levels. Eliminating
state-sharing rules from our fiscal policy will allow us to start afresh,
open our lines of communication, and create stronger fundraising operations
throughout the country.

This proposal in no way affects prior national party obligations to the
states. The Green Party of the United States will repay all state-sharing
accrued through 2011.

Proposal

The following changes are to be made in the Fiscal Policy to eliminate state sharing:

Article VII Income

Section 7-4 Revenue Sharing

Delete subsection 7-4.1 which reads:

7-4.1 National-driven contributions are those that are received through
efforts of the GPUS, its staff, contractors, and the NC. Such contributions
shall be considered 'internal funds' rather than 'conduit funds' as defined
by the FEC, unless or until they are released to the state party, caucus, of
network. For national-driven programs, 70% of the donation will be allocated
to the GPUS and 30% to the state party, caucus, or network.

Renumber and edit subsection 7-4.2 which reads:

7-4.2 State, caucus, network, and committee-driven contributions are those
that are received through efforts of the state party, caucus, network, or
committee. For these programs, state parties and committees will be
allocated 70% of the contribution, and caucuses and networks will be all
allocated 90% of the contribution. The GPUS will be allocated the remaining
share.

To read:

7-4.1 Caucus, network, and committee-driven contributions are those that are
received through efforts of the caucus, network, or committee. For these
programs, caucuses, networks, and committees will all be allocated 90% of
the contribution. The GPUS will be allocated the remaining share.

Delete subsection 7-4.3 which reads:

7-4.3 If according to FEC regulations, a state party cannot accept its full
share of the money for its own use, the Treasurer and the Fundraising
Committee shall consult with the state party treasurer to establish the
alternative disposition of the contribution for the state's benefit.

Renumber subsection 7-4.4 to be subsection 7-4.2.

Renumber and edit subsection 7-4.5 which reads:

7-4.5 In reporting revenues due to a restricted fund of a state, caucus,
network, or committee, the report shall include the name, address, phone and
email of each donor, the date, amount, and method of payment for each
donation, and any notes a donor may have sent to the state, caucus, network,
or committee. Caucuses, networks, and committees requesting disbursement of
funds shall file their requests according to 8-1.6.

To read:

7-4.3 In reporting revenues due to a restricted fund of a caucus, network,
or committee, the report shall include the name, address, phone and email of
each donor, the date, amount, and method of payment for each donation, and
any notes a donor may have sent to the caucus, network, or committee.
Caucuses, networks, and committees requesting disbursement of funds shall
file their requests according to section 8-1.6.

Article IX Financial Management

Section 9-5 Borrowing From Restricted Funds

Edit subsection 9-5.2 which reads:

9-5.2 Restricted Funds raised for or donated to a state, caucus, network, or
committee may only be borrowed with the authorization of such officer or
officers as designated by and consistent with the rules of the state,
accredited caucus, network, or committee and shall include a plan to repay
the funds borrowed.

To read:

9-5.2 Restricted Funds raised for or donated to a caucus, network, or
committee may only be borrowed with the authorization of such officer or
officers as designated by and consistent with the rules of the caucus,
network, or committee and shall include a plan to repay the funds borrowed.

Delete subsection 9-5.4 and renumber subsection 9-5.5 to be subsection 9-5.4
which read:

9-5.4 Transfers from Restricted Funds shall first be borrowed from
national-driven state sharing. Only if that fund is depleted may transfers
be made from other Restricted Funds.
9-5.5 All transfers from the Reserve Accounts must be reported to the NC
prior to their final execution and must include the source, amount and
purpose, and in the case of Restricted Funds, a plan and time line for
repayment.

Resources

Implementation/Timeline/Resources:

Fiscal Policy Changes would become effective on January 1, 2012.

Resources: none

References

Fiscal Policy http://www.gp.org/documents/fiscal-policy.shtml

Contact: Susan Chunco ukapole@att.net

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