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Montana Freemason April 2017 Volume 93 Number 1 Montana Freemason April 2017 Volume 93 Number 1
The Business of the Fraternity

Bruce Lahti, Grand Treasurer

At a recent Grand Lodge officer’s retreat, I discussed The dividends and interest from those funds are
just how the business of the fraternity is conducted. I distributed to the Lodges annually. The principal of the
held the same discussion with the members attending fund cannot be touched. The Pooled Lodge Investment
the Montana Masonic College a few days later. In both Fund is a pool of funds from various Lodges managed
cases, Brothers advised me that they learned a great deal together. The purpose was to tie into the same investment
from those discussions. So I thought I might carry that management that Grand Lodge uses. These funds are
discussion over to the Montana Masonic News. strictly assets of the various Lodges that contributed to
the fund and can be withdrawn at any time, either in
What we generally think of as Grand Lodge consists whole or in part. Grand Lodge receives no income for
of two separate corporations. They are the Grand Lodge holding and managing these funds.
AF&AM of Montana, Inc. and the Montana Masonic
Foundation, Inc. Both are not-for-profit organizations, The total assets of Grand Lodge, which exclude the
but the similarity ends there. designated funds discussed in the previous paragraph,
are slightly over $1.4 million and consist primarily of
The Grand Lodge corporation is considered a 501(c) cash and investments.
(10) fraternal organization. This is the organization
through which we operate our Masonic fraternity. This is The other organization associated with and supported
sponsoring organization for all of the constituent lodges by Montana Masons is the Montana Masonic Foundation,
and the organization through which each Lodge is tax Inc. This is a 501(c)(3) public charitable trust. It is
exempt. This is also the organization that supports the important to note that the Montana Masonic Foundation
Grand Secretary’s office, Grand Lodge officers’ travel is not owned by Grand Lodge or even by the Masons of
and Masonic programs. Those items make up the budget Montana. Under the law, no one owns a public charity
that is presented at the Grand Lodge session annually. and at the same time, everyone owns a public charity.
Once an individual or organization sets up and funds a
Generally speaking, the Grand Lodge budget has public charitable trust, they no longer have ownership
changed little over the past 10 years. The overall budget of that trust. So when Grand Lodge established the
for the 2006-2007 year was $218,025, while the budget Montana Masonic Foundation in June 1960 and funded
for the 2016-2017 year is $214,600. it, it no longer had any ownership whatsoever of the
funds donated to the Foundation.
The most recent budget consisted of $47,550 for
Grand Lodge officers travel and expenses, $148,750 for A public charity is managed by a Board of Directors
the Grand Secretary’s office, including Grand Lodge and Trustees for the benefit of the public. There are
office operating expenses and $18,300 for Grand Lodge numerous rules regarding how a public charity must
session and other Grand Lodge programs. operate. But paramount among those is that it is not to
be used to benefit any individual related to the charitable
Grand Lodge has income that offsets some of trust. It must be used for public charity purposes.
those expenses which includes investment income,
a staff services agreement with the Montana Masonic The Montana Masonic Foundation was established
Foundation and income from sales of supplies. The as an educational and scientific trust. That means that
balance of the Grand Lodge expenses is covered with the primary purpose of the Foundation is the further
per capita. educational and scientific endeavors. The Foundation
meets those purposes by encouraging early childhood
Grand Lodge also holds funds for two designated reading through the Bikes for Books and Kindles for
accounts that are not in any way available for Grand Kids programs in cooperation with the various Lodges
Lodge operations. Those are the Prepaid Life that promote that program throughout the State. In
Membership Fund and the Pooled Lodge Investment addition, the Foundation funds grants to schools for
Fund. library, music, science and other educational programs.
It also supports the very publication in which you are
The Prepaid Life Membership Fund holds funds from reading this article.
members who have paid into their Lodge’s prepaid life
membership. These funds are generally invested in In addition to those charitable programs, the
governmental bonds, CD’s and other fixed investments. Foundation owns and supports the Montana Masonic
Museum in Helena. Because Masonry in Montana pre-
dates statehood, our library and archives hold documents
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