Alexandria, VAJuly 2009

Responsibilities of a LeaderDetermine the organization’s missionSelect the chief executive and assess their performanceSafeguard the assets of the organizationEnsure effective strategic and organizational planningEnsure adequate financial resourcesExercise fiduciary responsibility and oversightDetermine the organization’s programs and servicesEnhance the organization’s public standingEnsure legal, moral, and ethical integrityRecruit and orient new board members and assess its

performance

Fiduciary ResponsibilityDuty of Care

Duty of Loyalty

Duty of Obedience

Reliance on Experts

Understanding Your Organization Branches are typically recognized under 501 ( C )( 3 ) or (6) of the

Internal Revenue Code.

Once recognized, branches are exempt from paying federal and state income taxes and federal unemployment tax. Branches are not exempt from payroll related taxes, sales tax, and unrelated business income taxes.

Branches of ACA are membership organization with approximately 50-75% of annual revenues generated from membership dues.

Non dues revenues include: conference related revenues; professional learning opportunities; sales of publications and video tapes; investment revenues; advertising revenues , journal subscriptions; etc.

Branch operating budgets will vary, depending on size. Salaries, professional fees, payroll taxes, staff benefits, printing, postage , travel related costs, and occupancy expenses typically represent the organization’s largest annual expenses.

Common Leadership ChallengesRegulatory Issues – Failure to comply with

federal and/or state laws and regulations

Business Issues – Failure to understand and/or follow generally accepted business practices

Contractual Issues – Failure to fully understand or properly calculate the terms of a contract prior to its executiom.

Regulatory ChallengesIncomplete or inaccurate tax filingsFailure to file appropriate returnsFailure to file returns in a timely mannerFailure to apply for tax exemptionIndependent Contractor vs EmployeesIncomplete and inaccurate financial recordsFailure to properly report UBITPrivate InurementInaccurate reporting of lobbying expendituresFailure to disclose related party transactions

Business ChallengesInadequate reservesInadequate financial reportingInadequate budgeting practicesFailure to properly analyze profitability

(membership)Lack of insuranceFailure to invest or manage cashLack of the segregation of dutiesLack of adequate and sufficient internal controlsFailure to maintain adequate recordsSpend money to make money mentality

Contractual ChallengesUnderstanding the nature of contractsAmbiguous termsAttrition penalties or clausesFailure to fully negotiate to your benefitMultiple year contractsBait and Switch PricingOne sided cancellation termsCancelling a contract or buyouts

Current Issues Facing Branches

Sharing EINFailure to receive division accountingNot tax exemptHave not filed appropriate tax returnsDivision separatingFalling membershipLack of non dues revenuesIncreasing expensesAttrition penaltiesInactive divisions

American Counseling Association(703) 823-9800

Richard Mozier, extension 337 rmozier@counseling.org