Quannapowitt Yacht Club

The purpose of the CAPITAL FUND is to have sufficient funding available to make major capital improvements to the club's physical facilities including major building repairs or improvements and major repairs or additions to the club's fleet without borrowing or making large dues increases. It. is not to be used for ordinary operating expenses. The size of the CAPITAL FUND shall range from a minimum of zero dollars to a maximum of one year's projected annual receipts.

Each year the Board of Trustees shall, in its budget, allocate approximately 10% of the club's projected annual receipts to the CAPITAL FUND. In December of each year a deposit shall be made into a special CAPITAL FUND account of the surplus amount of receipts minus disbursements for the year less a reasonable amount (approximately 5% of a year's projected annual receipts) to be carried forward into the next year for the next year's Board to use for beginning its operations. Such a deposit need not be made in a year when unexpectedly high disbursements were required, when unexpectedly low receipts were encountered or when the maximum size of the CAPITAL FUND has been reached.

Disbursements from the CAPITAL FUND shall be approved by a majority of the members eligible to vote and present at a Special Meeting

In general, such disbursements should exceed 10% of a year's projected annual receipts in order to qualify for consideration and approval.

An audited accounting of the receipts and disbursements for the CAPITAL FUND shall be made by the Treasurer as a separate item under ARTICLE V, Section 5C.