In the event of PGA dissolution, what happens to the members' money?

Prepare for the Professional Golf Management (PGM) Qualifying Test. Study with flashcards and multiple-choice questions—all with hints and explanations. Excel in your exam!

In the case of PGA dissolution, the correct course of action regarding the members' money is that it is donated to charity. This approach reflects a commitment to ensure that any remaining assets are utilized in a manner that supports the community or causes that align with the values of the organization.

The rationale behind this decision typically stems from the principles of accountability and ethical stewardship, ensuring that resources left after organizational expenses and obligations serve a greater good. This decision is also aligned with many non-profit or membership organizations' philosophies, where residual assets are often directed toward philanthropic pursuits rather than being distributed among members or retained for future organizational needs.

Distributing funds among members, paying off debts, or setting aside funds for future needs may seem like logical options; however, they do not align with the intended charitable disposition when a structured organization like the PGA undergoes dissolution. In essence, directing remaining resources to charitable contributions ensures that even in dissolution, the organization upholds its mission of contributing positively to society.

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