WHEREAS the _________________ Association is a nonprofit mutual benefit corporation; and

WHEREAS the corporation seeks to act in accordance with applicable IRS Revenue Rulings;

RESOLVED, that any surplus funds remaining in the Association's budget at the end of the fiscal year shall be applied to the following year's budget as provided for in IRS Revenue Ruling 70-604.

<This sample resolution is an example of a formal resolution used by some associations. The vote can also done without the "WHEREAS" and "RESOLVED" formalities and be put into plain English. Since the resolutions does not require a secret vote, approval of the resolution can be done by a membership voice vote at the annual meeting or it can be placed on the ballot. >