Associations 101:
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Transcript of Associations 101:
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ASSOCIATIONS 101:
Sources: Robert Harris, CAE Heather Fuselier, CAE
American Society of Association Executives
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ASSOCIATIONS GO WAAAAAY BACK 1735: American Philosophical Association founded by
Benjamin Franklin, now the oldest association of continuous existence.
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WAAAAAY BACK
1835: Frenchman Alexis deTocqueville authors “Democracy in America,” saying:
“Americans of all ages, all conditions, all minds constantly uniteconstantly unite. Not only do they
have commercial and industrial associations in which all take part, but they also have a
thousand other kinds: religious, moral, futile, very general and very particular, immense
and very small.”
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WAAAAAY BACK
1908: President Theodore Roosevelt recognizes the value of associations, saying:
“Every man owes part of his time and money to the business or industry to which he is engaged.
No man has a moral right to withhold his support from an organization that is striving to
improve conditions within his sphere.”
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WHAT IS AN ASSOCIATION?
An organization of people with a common purpose and having a formal structure.
A community of individuals or companies that collectively serve the interests of their members that cannot be met effectively by individual action.
There are nearly 2 million nonprofits in the US
Chambers of commerce and associations both tend to be assigned the 501(c)(6) designation by the IRS to serve as a business league.
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501(C) WHAT?!?
Tax Statuses of Associations
501(c)(3): Education, research, professional, or philanthropic/charitable purpose. DO NOT DO NOT LOBBYLOBBY.
501(c)(6): Trade and Individual membership organizations that provide benefits to members and lobby on their behalf.
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PROFESSIONAL VS TRADE ORGANIZATIONS
Professional : A not-for-profit voluntary membership organization representing individuals with a common interests in a subject or a profession such as law, medicine, accounting and school food service.
Trade Association: A not-for-profit voluntary membership organization that represents a group of companies having a business or trade in common. For example: newspapers or automotive.
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FLORIDA SCHOOL NUTRITION ASSOCIATION Is a Professional Association and is a 501(c)(6)
Your Local School Nutrition Association
Is a Professional Association and is a 501(c)(6)
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KEEPING IT REAL
Legal Documents for Associations
Articles of Incorporation Bylaws Policies Procedures
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KEEPING IT REAL
Articles of Incorporation
Documents between association and STATESTATE to acquire legal standing.
Needed to request exempt status from the IRS.
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KEEPING IT REAL
Bylaws
Document between association and MEMBERSMEMBERS to describe how the organization will operate and its relationship to stakeholders (members).
Amendments usually require approval of members.
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KEEPING IT REAL
Policies
Motions made and approved by the board to set best practices for the management of the association.
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KEEPING IT REAL
Procedures
Administrative responsibilities of staff or volunteer leaders to carry out policies and run the organization.
Outlined in a procedures manual that documents the work steps required for management of the association.
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VISIONARY
The board sets the course for the organization well into the future.
Though a director or officer may have term limitations in the sense of number of years or number of terms, there is a need to think beyond one’s term in order to guide the organization and the community it represents.
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FIDUCIARY
The board has responsibility for the finances and resources of the organization.
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BOARD OF DIRECTORS… Must act in good faith Must act in good faith and must not allow their personal
interests prevail over the interests of the organization
Must be diligent and prudent Must be diligent and prudent in managing the organization’s affairs.
The individuals charged with governing must handle the organizational duties with such care as an ordinary prudent person would use under similar circumstances.
Must ensure Must ensure that the organization’s resources are handled in a prudent and responsible manner
Must lead Must lead the organization with purpose and integrity.
Must comply Must comply with state and federal law, and conform to the organization’s charter, articles of incorporation and bylaws.
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THE FEEL-GOOD PART
Mission, Vision, and Values Statements These statements guide the board, staff,
volunteer efforts and allocation of resources.
They have a public relations value.
They may be fine-tuned periodically for relevance, usually in conjunction with the strategic planning process.
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THANK YOU!
Comments? Questions? Fran Gilbert, CAEFSNA 888-878-1832fgilbert@floridaschoolnutrition.orgwww.floridaschoolnutrition.org