Mr Cain is correct about the enforcement of by-laws and the AMA having suggestions for by-laws for clubs. Mr Cain may recall the year that the AMA had some by-law suggestions done up by some law school. I forget the issue that had the AMA seek out a law schools help. It was something hot at the time. There is many good folks that have worked very hard at local clubs to make them work. Horrace is one of those folks.
The way these things go in my experience is a club is doing well and someone comes along that has no idea of the hard work involved in making a club work, keeping the field, and making sure some well meaning person don't comes along and screws up the work of years. By-laws are made to protect the club and the membership. Now, if I understand right. Your club is entertaining a idea of a by-law change to allow serving officer free membership. I know what would happen with the bunch I fly with. That proposal would find itself where the sun don't shine.
Most clubs come to their end by over complicating things. Check with the AMA and get their by-law suggestions. Pretty simple