It sounds to me as if this might be one of the "articles of incorporation" for when your guild applied for non-profit, tax exempt status. I am not a lawyer, but this requirement definitely does not sound like a legal requirement for either the federal government or the state government.
My understanding is that a guild might apply for non-profit tax exempt status so that, if they hold a quilt show, they are not taxed on the profits from the show. I think that when a group applies for this status, they must create "articles of incorporation" that include bylaws, etc. and apply for the status with the state.
If this requirement was in the articles of incorporation of your guild, then it is a legal obligation. The articles of incorporation can be amended, but the guild would need to follow a legal process for doing this.
You might want to ask for a copy of the guild's articles of incorporation to see if this is the wording that is in there. It might be time for a change.
Edit: I found a couple of websites that explain the process.
https://themodernquiltguild.wordpres...n-profit-info/
http://cullinanelaw.com/mqg/