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Merriam-Webster defines a fiduciary as “one What are the “duties” of the Lodge? Section 26010
who holds a fiduciary relation or acts in a fiduciary of the Constitution and Code states, in part:
capacity.” While this is absolutely correct, it’s not
very helpful. A better definition might be a person ”DUTIES OF LODGE. A lodge must relieve its
who has been entrusted with the property or power own members, their widows and orphans, when
for the benefit of another. So, how does that relate to in distress, regardless of their place of residence,
Masonry? according to its own circumstances and ability. It
shall see that its needy members do not suffer or
want, or become a burden to others”.
The Fiduciary However, according to Section 24080:
Mason Lodge Assets.
“B. Members Not To Benefit Individually From
R. W. Bro. Bruce W. Lahti, PM, Grand Treasurer 1. Except as provided in Section 26010, no lodge
shall expend, invest, pay, or transfer any of its funds,
other assets, or the proceeds thereof, to or for the
individual benefit of any of its members, including,
but not limited to, purchasing life memberships for,
There are certain officers in the Lodge that are or paying dues or assessments on behalf of, any
obvious fiduciaries. First, the Secretary receives member.
all funds and pays them over to the Treasurer. The
Treasurer is then required to keep a just and regular 2. No lodge shall transfer any of its assets, monetary
account of the same and pay them out at the will and or otherwise, in any manner which may jeopardize
pleasure of the Worshipful Master. Since all three are the tax status of the lodge or of the Grand Lodge of
dealing with funds of another, the Lodge, they are AF&AM of Montana.”
fiduciaries. But in a larger sense, all members of the
Lodge are fiduciaries to a limited extent since those While these are fairly specific requirements of a
funds need to be paid out with the consent of the Lodge, nothing in the Constitution or Code prevents
Lodge. It is incumbent upon those members to act a Lodge from engaging in civic or charitable activities
prudently in the best interest of the Lodge. in their community. Nothing prevents the Lodge from
engaging in fraternal activities. These support the
The Uniform Prudent Management of Institutional not-for-profit nature of our Lodges.
Funds Act (UPMIFA) establishes duties for the
prudent management of assets of another individual
or entity. They are the duty of care, the duty of loyalty,
and the duty of obedience. SPEAK WITH HONESTY
The duty of care means that members of the Lodge
should give the same care and concern to the Lodge THINK WITH SINCERITY
that they would give to themselves in their daily
lives. This means acting with other Lodge members ACT WITH INTEGRITY
to advance the Lodge’s mission and goals. From a
financial standpoint, this would include questioning
expenditures to determine their prudence. It is well
to remember that the property and funds of the
Lodge are the result of the efforts of the generations Care needs to be taken, however, when it comes
of Masons that precede us and we have a fiduciary to outside business activities of a Lodge. Some
duty to preserve them for the benefit of our future outside business activities are permissible under
brothers. certain circumstances, such as owning and renting
property or fundraising activities. The Internal
The duty of loyalty means that members should place Revenue Service (IRS)has strict rules when it
the interests of the Lodge above their own personal comes to unrelated business taxable income. These
interests in all matters concerning the Lodge. This are designed to prevent not-for-profit organizations
also means not using the Lodge and funds or assets from competing with for-profit businesses. Unrelated
for personal, professional or business gain. business taxable income is any income received
from a trade or business, regularly carried on, that
The duty of obedience means that the members is not directly related to the not-for-profit purpose of
must make sure the Lodge abides by its by-laws, the organization. In the case of Masonry, that would
the Constitution and Code of the Grand Lodge, and be any income not directly related to our fraternal
all applicable civil laws and regulations. That also purpose. Failure to follow these rules could result in
means that members must carry out the Lodge’s the Lodge losing its not-for-profit status.
duty and mission to its members and to Masonry in
general.
Montana Freemason Page 14 Jan/Feb 2022 Volume 98 No.1
