The First Steps in Starting an Association

The most fundamental part of living in any free society is the ability to organize to form groups of people with similar interests. Often these are called Associations although there are a whole host of other names used for them including: organizations, federations, alliances, institutes, guilds, societies, foundations, clubs, congresses, coalitions, centers, networks, unions, chambers, or bureaus. Regardless of the name they all have the same goal to serve the needs of their members. Associations find their strength in numbers often sharing the common interests of industries, professions, charities, hobbies, or philanthropic action.

Every reputable association begins with one thing, a solid foundation. Similar to any business they require good organization. The first step towards this organization is to create a group of leaders to serve as the organizing committee to represent all the factions of the constituency. When selecting these leaders be sure to choose those who have an adequate amount of time and funds available to commit to the association. There after you will be able to delegate tasks to the individuals to be reported on when the group meets as a whole. The next step is to articulate the purpose that creates a sense of urgency to serve as a rallying point for potential members. You will then need to evaluate the competition and your potential consumers to assess the needs for your association. Using this information you can test the potential for your organization. It may be needed to gather information about other associations to help further your development including members. A formal study of the market is also always helpful in creating any organization and is crucial to its future success.

A viable mission statement is the next logical step to the development of any association. A mission statement is, essentially, a vision of what the organization is to be and whom it is to serve. It is usually short only a couple sentences long and broad enough to allow the organization to increase its goals and services without outgrowing it. In it you can specify the objectives and goals that support it. The mission statement will be a standard that progress is measured against so making it credible is extremely important.

When you begin to organize there are two important decisions you must make: if you wish to incorporate and what tax-exempt status you will apply for. Some incorporated associations must observe organizational requirements set by law, and most states require non-profit corporations to hold annual meetings. To be recognized as non-profit, under the Tax Code, means your income can exceed expense although no profits are to the benefit of any individual. It is best to consult a lawyer for these instances. Sometimes your status can even result in considerable savings on items such as postal rates and state taxes.

Financing is the next of the integral parts of any association. First you’ll want to set your membership dues, which have two parts: the base and the rate. The dues structure should meet the growth demands, generate significant income, be equitable, and lead to accurate reporting. Setting up a broad range of activities for your members is also a critical part of an association. One common practice is offering a small number of core services that accrue to members as a benefit, while making others available for a fee. Another excellent source of income is meetings, where often donations are made to many start-up groups for the initial annual meeting. The format for managing your association can be any of the following: All volunteer run, volunteer and a skeletal staff, association management company, or a stand-alone association. Volunteer run, because of low cost, is the most desirable although organizational efforts are that much more difficult. A combination volunteer and skeletal is optimal giving a nice array of input on running it.