Governance and structure of the company – will there be a central organization with a single board of directors? Does each chapter or affiliate have its own card? To what extent are local organisations formally linked to the national organisation? Most chapter-affiliation agreements define a specific area in which the chapter will be active. Sometimes the status of the chapter is exclusive in this area. This helps avoid competition between chapters and double fundraising efforts, although the unlimited nature of online fundraising has complicated this issue in recent years. Some affiliated organizations are highly centralized, with most decisions and operational oversight reporting to a strong national office. The National MS Society and the American Red Cross (ARC) are examples. At one time, the member organizations of the MS Society were very autonomous, collecting money and offering services at the local level. Choosing an appropriate legal and organizational structure for an affiliation model should be a thoughtful strategic decision for each group considering this step. But whichever form is ultimately chosen, organizational documents should be negotiated conscientiously in each of the following areas. Corporate risk and legal representation: The legal form defined in the affiliation agreement may require certain types of risk management and legal representation.
The level of control of companies, which rests within the national organization, often determines which entity, in a membership, is responsible for certain types of risks and legal actions. Lines of responsibility and responsibility that are not clearly defined by the company structure should be negotiated and clearly expressed in organizational documents. In the nonprofit sector, there is a trend towards consolidation and centralized ownership models. The hope is that such agreements will have financial and programmatic benefits for all parties. But entry into these professional and operational associations requires compromises. No one-size-fits-all, but all the systems and processes that define your membership must be considered. CLA`s collaboration with social organizations and other non-profit organizations gives us a broad perspective on the complex decisions needed to develop a strong affiliate model. With qualified teams in the areas of outsourcing, finance department assessment, operational improvement, information security and other areas of public utility, we can guide you through a thoughtful process of taking into account each of the key areas that make up a membership agreement. .
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