by Roy C. Hengerson
The Ozark Chapter, like all 62 United States Sierra Club chapters, receives a significant portion of its annual revenues from the national Sierra Club. When you pay Sierra Club dues or when the Club receives bequest revenues, part of that money goes into what is called the Chapter Revenue Subvention pool. This is then distributed on a quarterly basis to all chapters based on a formula which includes the membership of the chapter, its geographical area, and the number of Groups it has. In 2001, the last fiscal year for which data is available, the Ozark Chapter received about $53,500 from the chapter subvention pool. The total distributed to chapters was $3.87 million.
In previous years all this money for the chapters was “hard” money, also known as 501 c(4) money from that section of the IRS code. This is money given directly to the Sierra Club which is not tax deductible for the giver. The Sierra Club also uses “soft” or 501 c(3) money. This is money given to the Sierra Club Foundation and it is tax deductible for the giver. This money is then transferred to the Sierra Club, which can use the money for educational and charitable purposes, but not for legislative lobbying or political work.
The Sierra Club has learned in recent years to make effective use of “soft” 501 c(3) money in its conservation campaigns. Much of what the Club does to win on a particular environmental issue is educational in nature, and therefore fundable with 501 c(3) money. Litigation can also be funded by 501 c(3) dollars.
Starting in 2003 Sierra Club chapters will receive 45% of their subvention revenues in 501 c(3) dollars and 55% in 501 c(4) dollars. However, the total size of the chapter subvention pool is being increased by 14%. The pool will now total $4.4 million, with the Ozark Chapter getting $63,000 from the pool ($33,600 in 501 c(4) funds and $29,400 in 501 c(3) funds). So the Chapter will get 18% more from the national Club.
The Ozark Chapter has received (from sources other than the chapter subvention pool) and used effectively “soft” money revenues for a number of years and should benefit from this change. Other chapters who may not have as much experience with using “soft” money may have a bit harder time coping with the change. Therefore, the Sierra Club is stepping up the training and assistance available to chapter volunteers and staff in managing their available funds, both 501 c(3) and 501 c(4), for maximum effectiveness.