Moving Beyond MUM: A New Membership Support System for the Reform Movement -- PROPOSED RESOLUTION AMENDING URJ CONSTITUTION AND BYLAWS

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1 Moving Beyond MUM: A New Membership Support System for the Reform Movement -- PROPOSED RESOLUTION AMENDING URJ CONSTITUTION AND BYLAWS Background The Reform Movement needs a membership support system that is simple, fair, predictable, and transparent. The system must be fair to congregations, and contribute sufficient funds to the work of both the Union for Reform Judaism (URJ) and the Hebrew Union College-Jewish Institute of Religion (HUC-JIR). Both the URJ Board of Trustees and the HUC-JIR Board of Governors have endorsed a new membership model for congregations. The model will be presented to the URJ s General Assembly at the Biennial this November in Orlando. The General Assembly will be asked to vote on a resolution amending the Constitution and Bylaws and implementing the new model. That resolution is set forth below. What are the key features of the proposed system? Congregations will contribute 4% of their operating revenues (as detailed below). This shift from the current expense-based model to a revenue-based model will allow the system to be more responsive to changes in a congregation s finances. To ensure predictability, there will be limits on how much a congregation s expected commitment may vary (up or down) in any given year. The new system will go into effect for fiscal years beginning on or after January 1, The system will require completion of one simple form, eliminating most of the timeconsuming paperwork of the previous system. Congregations that are paying according to the formula and are current in their payments, or are adhering to a plan, will see no increase in their obligation for the first two years under the new system, unless noted otherwise in a plan agreement. The membership support percentage may be adjusted every two years, within a narrow range, 3% to 4.5%. 1

2 What are the details of the new system? 1. Adjusted Operating Revenues: For the first two years of the new system, each congregation will be expected to contribute 4% of its Adjusted Operating Revenues annually as its Reform Movement Affiliation Commitment. a. Operating revenues are defined as all gross revenues of the congregation (including withdrawals from endowed or restricted funds) that support day-to-day operations of the congregation. Revenues from a congregation s day school, early childhood, preschool or camp programs, cemeteries, and contributions to the corpus of endowments, restricted funds or building funds will be excluded from Adjusted Operating Revenues as well as funds that are taken in and directly passed through to another organization. All other revenues, including drawdowns from restricted funds to offset operations, will be included. b. A Membership Committee will be appointed to oversee the Reform Movement Affiliation Commitment process, establish policies and procedures, and review compliance with such policies. 2. Limits on Yearly Changes: To protect congregations from unusual increases in their Reform Movement Affiliation Commitment, and to give the URJ and HUC-JIR short term predictability in revenue from membership payments, the new system will include limitations on yearly changes to the Reform Movement Affiliation Commitment. 3. Relief Provisions: The Membership Committee will establish and publish standards for granting congregations temporary relief from some or all of their Reform Movement Affiliation Commitment. a. The President of the URJ or his/her designee will be authorized to agree to such relief as long as such relief is in accordance with the policies established by the Membership Committee. b. Any agreement for relief that is not in accordance with policies of the Membership Committee may be executed only in unusual circumstances and with the prior approval of the URJ Board of Trustees or Oversight Committee. The Membership Committee will monitor all agreements for relief to ensure compliance with stated policies. 4. Process for Future Adjustments: The Chair of the Board of Trustees will appoint a Membership Policy Review Committee (MPRC) every two years to review the 4% contribution level and the limits set forth in paragraph 5. The 4% may be adjusted every two years within a range from 3% to 4.5%. Decisions of the MPRC will be final unless 2

3 application is made by 20 congregations in good standing for review by the General Assembly. 5. Special Rules for the First Years of the New System a. For the first two years of the new system (2016 and 2017) i. If application of the new formula will cause a congregation s Reform Movement Affiliation Commitment to be greater than the amount contributed in the prior fiscal year, and that congregation is current with its commitment for the prior fiscal year under the old formula or is on an approved plan, the congregation will not be expected to contribute any more than was contributed in the prior fiscal year, unless otherwise noted in a plan agreement. ii. If application of the new formula would cause a congregation s Reform Movement Affiliation Commitment to be less than the amount contributed in the prior fiscal year, the amount of the decrease will be limited to 10% per year for congregations that are current with their commitment for the prior fiscal year under the old formula and 5% per year for those congregations that have paid in full for the prior fiscal year under an approved relief plan. b. In the third year of the new system (2018), for those congregations that are in full compliance with their obligations for the prior fiscal year and that are not on a plan, if the application of the formula increases the contribution due in the third fiscal year (2018) over that paid in the prior fiscal year (2017), such increase in the congregation's contribution for the third fiscal year (2018) will not exceed 10% of the prior year s contribution. For the fourth year of the new system, the Membership Policy Review Committee shall make such adjustments that it deems appropriate. c. Congregations that are not in compliance with their obligations will be expected to make the contribution defined under the new formula. 3

4 THE PROPOSED RESOLUTION AMENDING THE URJ CONSTITUTION AND BYLAWS FOLLOWS. RESOLUTION AMENDING THE CONSTITUTION AND BYLAWS OF THE UNION FOR REFORM JUDAISM AND IMPLEMENTING CHANGES TO THE SYSTEM BY WHICH CONGREGATIONS PROVIDE FINANCIAL SUPPORT TO THE UNION FOR REFORM JUDAISM AND THE HEBREW UNION COLLEGE-JEWISH INSTITUTE OF RELIGION BE IT RESOLVED BY THE GENERAL ASSEMBLY THAT: WHEREAS, one feature that has made the Reform Movement in North America strong and vibrant is the sacred partnership between the congregations, the Union for Reform Judaism, and Hebrew Union College-Jewish Institute of Religion in which the congregations provide some of the financial support needed by the Union and the College-Institute. The system established in the Constitution and Bylaws by which the congregations provide such financial support and compliance by the congregations with that system is and will continue to be a critical factor in the continued success and growth of the Reform Movement in North America. Pursuant to and in accordance with Article VII of the Constitution of the Union for Reform Judaism and Article XVII of the Bylaws of the Union for Reform Judaism: 1. Article III of the URJ Constitution is hereby deleted and the following is substituted: SECTION 1. Any Jewish congregation or other Jewish entity in the United States of America, Canada, or their territories or possessions, upon approval by the Board of Trustees, may become a member of this Union by subscribing to its Constitution and Bylaws. SECTION 2. The Chair of the Board of Trustees shall appoint a Membership Committee which shall be duly representative of the congregations and the institutions of the Movement to review the system established in the Bylaws by which the congregations provide financial support to the Union and the College-Institute. This Membership Committee shall review the entire system of financial support and make recommendations to ensure that the system is duly reflective of the financial health of the congregations and the overall needs of the Union and the College-Institute. Subject to the approval of the Board of Trustees or Oversight Committee, the Membership Committee shall establish policies and procedures governing the foregoing system, shall monitor compliance with such policies and procedures, and shall make recommendations to the Board of Trustees or Oversight Committee as to when changes in the foregoing system should be made. SECTION 3. In the event that a congregation is not in compliance with the Bylaws of the Union with respect to payments and after a reasonable period of time in which to cure 4

5 such noncompliance, the Chair of the Board of Trustees, after consultation with the President of the Union, may recommend to the Membership Committee that notice be given to the congregation of the intention to recommend suspension from of all or part of the services received by the congregation from the Union. Such notice shall be issued upon approval by the Membership Committee. If, within thirty (30) days of the receipt of notice, such congregation requests a hearing, one shall be granted and held by the Membership Committee or a subcommittee thereof. If, after such hearing, the Membership Committee still deems the congregation not to be in compliance or if no such hearing had been requested, upon recommendation of the Membership Committee, the Board of Trustees or Oversight Committee may suspend part or all of the services of the Union to such congregation until such noncompliance is cured. SECTION 4. The Board of Trustees shall have the further power, after consideration of the recommendation of the Membership Committee and after notice to such congregation and an opportunity to be heard by either (a) the Board of Trustees or (b) at the Board's election a committee constituted by it to hear and report, to terminate the membership of any such congregation that has been suspended in accordance with Section 3 hereof. 2. Article X of the URJ Bylaws is hereby deleted and the following is substituted: REFORM MOVEMENT AFFILIATION COMMITMENT SECTION 1. Each constituent congregation of the Union shall be obligated to pay as its Reform Movement Affiliation Commitment into the treasury of the Union, exclusive of the contributions made to or on behalf of the Union by its individual congregational members or from other sources, for each fiscal year beginning with congregational fiscal year commencing on or after January 1, 2016, a percentage designated by the Membership Policy Review Committee of the congregation s adjusted operating revenues for the congregation s prior fiscal year. The designated percentage shall be reviewed by the Membership Policy Review Committee every two years; the designated percentage for the first two years is four percent (4%). The term adjusted operating revenues is intended to include all gross revenues of the congregation used to support the day-to-day operations of the congregation, including yearly withdrawals from endowed and/or restricted funds that are used to support operations. Excluded from the definition of adjusted operating revenues for purposes of this calculation are revenues received from a congregation s day school, early childhood or camp programs, cemeteries and contributions to the corpus of endowments, restricted funds and/or building funds as well as funds that are received and directly passed on to another organization. The congregation shall provide documentation of its adjusted operating revenues in accordance with policies specified by the Membership Committee and shall make payments periodically in accordance with policies established by the Membership Committee. 5

6 SECTION 2. A congregation which is experiencing financial difficulty in making the payments specified in Section 1 may request relief from some or all of its payment obligations. The Membership Committee shall establish and publicly promulgate policies and procedures governing requests for such relief and the standards under which such relief may be granted. The President of the Union or his/her designee is authorized to agree to such relief with a specific congregation so long as such relief is in accordance with the policies established by the Membership Committee. The Membership Committee shall monitor any agreements providing such relief to assure compliance with stated policies. Any agreement for relief which is not in accordance with policies specified by the Membership Committee may take place only in unusual circumstances and must be specifically approved by the Board of Trustees or Oversight Committee. Congregations that have not made payments in accordance either with the formula or with a duly agreedupon payment relief plan shall be expected to make the payments required by the new formula. IT IS FURTHER RESOLVED BY THE GENERAL ASSEMBLY THAT, IN ORDER TO IMPLEMENT THE AMENDMENTS TO THE CONSTITUTION AND BYLAWS HEREIN ADOPTED: 1. In order to implement Article X Section 1 of the Bylaws, for each fiscal year beginning with a congregation s fiscal year commencing on or after January 1, 2016, a congregation shall pay four percent (4%) percent of the congregation s adjusted operating revenues based on the congregation s operating revenues for the prior fiscal year. 2. On or before April 1, 2017, the Chair of the URJ Board of Trustees shall appoint a Membership Policy Review Committee which shall be co-chaired by a designee of the Union for Reform Judaism and a designee of Hebrew Union College-Jewish Institute of Religion, of no more than forty (40) individuals who are duly representative of the congregations and the Movement, to review the four percent (4%) number set forth above. The foregoing Membership Policy Review Committee shall be empowered to direct that changes be made in the four percent (4%) of adjusted operating revenues number within a range of from three percent (3%) of adjusted operating revenues to four and one-half percent (4.5%) of adjusted operating revenues. Such decision by the Membership Policy Review Committee shall be effective on January 1, 2018 and for a period of two years thereafter. The congregations shall promptly be notified of such decision. The decision of the Membership Policy Review Committee shall be subject to review by the delegates to the General Assembly upon application by no less than twenty (20) congregations that are then current with all of their payment obligations under the Bylaws which application shall then be considered in accordance with Article XIII, Section 11(a) of the Bylaws governing resolutions to be placed before the General Assembly. A new Membership Policy Review Committee shall be appointed by the Chair of the Board of Trustees and the foregoing process shall be repeated every two years thereafter. 6

7 3. In the new system, the payments due from some congregations may increase and for other congregations may decrease from what they have been paying. In order to ensure that congregations in compliance with their payment obligations do not experience an increase in payments, but at the same time not cause an immediate adverse impact on the Union or the College-Institute from congregations whose payments would decrease, there shall be limitations placed on the percentage by which each congregation s payment in a given fiscal year shall vary from the amount billed to the congregation in the prior fiscal year. For the first two years commencing January 1, 2016, the limits will be as follows: a. For those congregations that have made all payments that have been billed for their fiscal year prior to the fiscal year commencing January 1, 2016, in the event that the formula of four percent (4%) of adjusted operating revenues for their first two fiscal years commencing after January 1, 2016 i. would result in an increase in the amount to be paid, the congregation shall pay no more than the amount paid for the prior fiscal year (e.g., if a congregation paid the full $100 billed in the prior fiscal year and the application of the new formula would call for the congregation to pay $110 in the next fiscal year, the congregation would pay $100 in the next two fiscal years, and not the $110). ii. would result in a decrease in the amount to be paid, the amount of said decrease shall be limited to ten percent (10%) of the amount actually paid for the prior fiscal year (e.g., if the congregation paid the full $100 billed in the prior fiscal year and the application of the new formula would call for the congregation to pay $80 in the next fiscal year, the congregation would pay $90 in that fiscal year and $81 in the next fiscal year). b. For those congregations in compliance with a duly agreed-upon payment relief plan whose payment would increase over that paid for the prior fiscal year, the congregation shall pay the amount called for by the plan or by the new formula, whichever is less, unless otherwise noted in a plan agreement. For those congregations in compliance with duly agreed-upon payment relief plans whose payments would decrease from those paid for the prior fiscal year, the amount of such decrease shall be limited to five percent (5%) calculated in the same manner as in subparagraph a.(ii) hereof. c. In the third year of the new system (2018), for those congregations that are in full compliance with their obligations for the prior fiscal year and that are not on a plan, if the application of the formula increases the contribution due in the third fiscal year (2018) over that paid in the prior fiscal year (2017), such increase in the congregation's contribution for the third fiscal year (2018) will not exceed 10% of the prior year s 7

8 contribution. For the fourth year of the new system, the adjustments, if any proposed by the Membership Policy Review Committee shall be in effect. d. The foregoing adjustments shall be reviewed every two years by the Membership Policy Review Committee in accordance with the procedures and the time table set forth in paragraph 3 hereof. 4. The Membership Committee established in the Constitution and Bylaws shall adopt procedures to assure a fair and equitable system in which each congregation pays its share as specified either by the formula set forth in the Bylaws or in accordance with a duly approved payment plan taking into account the financial circumstances of a particular congregation. 8

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