MEMBERSHIP ACCOUNT

Many people are unaware of the legal requirements regarding funds paid to the Local by non-members versus funds spent exclusively on members. To ensure Local 720's compliance with these laws and regulations, David proposed a system to better segregate funds within the accounts. Consequently, a dedicated Membership Account, along with an associated Money Market Account, is now being utilized to hold funds contributed solely by members.

Since this money is only paid by members and is outside of the work referral fees paid by everyone, it can be used exclusively to benefit the members of Local 720 without fears of running into problems with the Department of Labor or the IRS.