Use of Funds Raised from Lions Clubs Activities (Part 2).

The following guidelines from the internet are a supplement to the Use of Funds Policy.

Q. Our Lions Club purchased directors and officers liability insurance with the crime/fidelity (Bond) coverage to protect the officers of the club and to protect the club from losses as a result of fraudulent acts. What funds may be used to purchase this insurance? 

A. This insurance coverage is considered an administrative expense and must be paid from administrative funds.

Q A member of our Lions Club recently lost their house due to a fire. May we use public funds to assist him? 

A. Use of public funds to benefit a member of the Lions club is not permitted. However the individual club members may donate to the member personally to assist him.

Q. We have a member of our club that needs a heart transplant. May we hold a fundraiser in his name to raise money for the financial hardship of the medical procedure? 

 A. No, this is considered a private benefit to a member. However, individual club members may donate to the member personally to assist him or ask others to donate personally to him.

Q. If our Lions Club invests our public funds, would we be able to use the interest for administrative costs?

A. No, the interest raised is considered public funds.

Q. How long can our Lions Club invest public funds before spending it?

A. The funds should be spent within the same year received unless they have been designated for long term projects.

Those interested in finding out what other expenses are disallowed click on the link above. We will examine how all these restrictions were overcome by Lions Club of Kota Kinabalu Host.