One issue that keeps component relations professionals awake at night is the problem of rogue chapters: those that ignore brand standards, do not follow charter requirements, or operate as if they are not connected to the parent association.

Two common challenges in the relationship between chapters and their national or international organizations are the competition that occasionally arises between them and the failure of some chapters to comply with legal and financial filing requirements. In a recent roundtable discussion held by the ASAE Component Relations Section Council, component relations professionals shared solutions to those challenges.

Competition

Chapters and their parent associations can be both comrades and rivals. Although they share a common mission and purpose, they frequently compete for members' time and professional development and conference dollars. In one scenario shared by association consultant Lowell Aplebaum, CAE, an international membership association organized a conference in a chapter's region. Although chapters typically see this as an honor, in this case the chapter felt threatened and staged competing events.

Roles and responsibilities need to be clear when the parent organization holds a meeting in a chapter's region: What does the parent organization do to plan the event? What does the chapter do to support it?

Communication between the chapter and national or international leadership is key to avoiding these situations. Roles and responsibilities need to be clear when the parent organization holds a meeting in a chapter's region: What does the parent organization do to plan the event? What does the chapter do to support it? If revenue is to be shared, what are the allocations?

Chapter leaders can be positioned as partners in the event, offering input and ideas specific to the region and even providing local flair. The parent organization can give the chapter visibility by allowing chapter leaders to welcome attendees, introduce speakers, and promote their local organization.

Compliance Violations

Chapter compliance with legal and financial filing requirements is critical. When a chapter ignores deadlines for filing IRS Form 990, the lapse can jeopardize the parent organization's nonprofit status, as well as the chapter's ability to use the parent's group exemption.

In a scenario shared by Dana Aragon, CAE, vice president of affiliate relations at the American Society of Radiologic Technologists, an ASRT chapter claimed to have filed the Form 990 but actually had not. The chapter lost its use of the group exemption, and it took 18 months and significant work to receive its own exemption. ASRT now requires chapters to submit their IRS filing with other annual reports that must be submitted to the national society.

Establishing solid governance that everyone understands can help avoid conflicts. Associations should have formal affiliation agreements with their chapters that set out how a chapter can use the organization's name, logo, and branding, advised Jeff Altman, an attorney at Whiteford, Taylor & Preston, LLP. Such an agreement should specify what is expected of the chapter and how the parent organization will support it. This agreement can provide a mechanism to enforce compliance by allowing the parent to revoke the noncompliant chapter's use of the association's logo and brand.

Altman also recommended that chapters secure liability and directors and officers insurance or participate in a group policy sponsored by the parent. This is especially important to protect the parent organization when chapters are not individually incorporated.

Monitoring chapters for compliance with filings and reporting can be especially onerous for small-staff associations, noted Meredith Gibson, chief operating officer at the Association for Women in Science. AWIS offers less-structured options—more like meet-ups—to small, regional membership groups. These affiliate groups operate without dues and bank accounts, so there are no IRS filling requirements and fewer state requirements. As membership grows, the affiliates can qualify for chapter status.

Giving Guidance

Providing legal and practical guidance can help prevent chapters from "going rogue" in these or other ways. Developing chapter leader handbooks with clear definitions of roles and responsibilities, providing leadership training, and fostering strong communication with chapter leaders can help avoid disputes.

Running a chapter is not a natural skill set for many volunteer leaders, who have a passion for supporting the profession or industry through networking and developing programs and resources but may not be inclined to pore over paperwork. Association leaders can streamline processes for chapter leaders by requiring only the necessary reporting.

Association leaders, in both chapters and the parent organization, should start from a place of authentic, deep listening—in person where possible, Aplebaum advised. Focusing on the association's mission, vision, and goals and identifying points of alignment between the association and its components can build a foundation for communication and lead to a strong, integrated, and successful organization.