Chapter Paid Staff

SOME FREQUENTLY ASKED QUESTIONS:

• How will the administrator be compensated?
• What type of contractual agreement will be arranged?
• Who will the person report to? How will the individual's (or firm's) performance be evaluated?

When deciding what type of person to hire as an administrator please consider the following pros and cons:

ASSOCIATION MANAGEMENT COMPANIES

• PRO: Offers expertise in association management in a wide-range of services (e. g. meeting planning, membership recruitment and retention, bulk and direct mailings).
• CON: Involve possible conflict of interest among clients, paying overhead, and possible lack of continuity due to changes in personnel.

INDEPENDENT STAFF/CONSULTANT

• PRO: Offers focused consistent support with skills that vary according to the person hired
• CON: May lack understanding of association management or field. Can "overbook" clients and/or have a conflict of interest among clients

IN-TRANSITION MEMBER

• PRO: Offers an understanding of the field, its educational needs and members; provides assistance to a fellow colleague
• CON: May present personal agenda conflicts, limited knowledge of association management, and a continuity issue.

Put on your business hat and consider all the implications.

To have an employee involves registering with the IRS (Chapters already have an EIN number), processing your own payroll, and determining what, if any, fringe benefits the Chapter will fund.

Alternatively, depending on the job's objectives, this person may well meet the independent consultant qualifications, and therefore could be paid as such. If you will be retaining them as an independent contractor, ensure the terms on the contract are consistent with the IRS considerations.

In addition, be sure to advise them of the necessity to file their own quarterly estimated taxes. Hiring an association management firm reduces the tax questions, but be sure to understand what the Chapter is paying for in its contract including overhead expense for services such as photocopying, fax, and computers.

No matter what type of individual or firm is hired, they should be provided with the following information:

1. A written position description
2. A supervisor or primary point-of-contact. This person will serve as a consistent and reliable source of decision making as well as someone to fend off directions from well intended, but perhaps misguided, fellow directors.
3. A predetermined method of evaluation

CHAPTER PAID STAFF LOGISTICS AND FINANCES
 

Be very clear on what expenses will and will not be reimbursed. Items such as a desk or chair, have shown up on expense accounts. The following is a list of items the Chapter will need to consider funding:

• A direct ACC line and answering machine in order to have a professional and consistent presence.
• Computer equipment is hopefully provided by the person or firm. If it isn't it will be necessary to deal with ownership and maintenance issues and costs. It might be more appealing to offer the administrator an allowance for such items.
• Chapter staff can benefit from participating in ACC's meetings by better understanding the global association, its benefits, and members. The Chapter may wish to consider funding the chapter's staff participation at one or more of ACC's meetings.
• If you have decided to give the staff check-signing authority, contact your bank and process new bank resolutions and signature cards. Many Chapters require two signatures per check, while others retain that authority for officers only. You may wish to establish a petty cash fund for small reimbursement. Be sure to verify receipts; the Chapter Treasurer should monitor and "balance the books" on a regular basis.
• In addition, if the Chapter needs to open an office, remember to secure insurance. ACC only carries Directors and Officers insurance for its volunteer leaders and $100,000 general liability (slip & fall) insurance which includes host liquor liability insurance.

Finally, like any job, as the Chapter grows and changes, your paid staff's duties should also be re-evaluated periodically.

Checklist: CHAPTER EMPLOYEES VS. CONSULTANTS

Many chapters will find it necessary to hire an administrator to assist with the day-to-day operations of running a chapter. The following questions, established by the IRS, will help you ensure that your consultants are working as independent contractors. In general, answering “no” to questions 1 through 14 and “yes” to questions 15 through 19 indicates that a worker is an independent contractor, not an employee.

1. Are instructions furnished regarding where, when, and how worker performs?
2. Is training required by the employer?
3. Is the worker a necessary and vital part of the continuing business operations?
4. Are services rendered personally by the worker?
5. Is hiring, supervising, and paying of assistance done by the employer?
6. Are hours of work set by the employer?
7. Does a continuing relationship exist with the employer?
8. Is full-time service required by the employer?
9. Is the work done on the employer’s premises?
10. Is the order or sequence of services set by the employer?
11. Are oral or written reports required by the employer?
12. Are regular payments (hourly, weekly, monthly) made by the employer?
13. Are the worker’s expenses paid by the employer?
14. Does the employer have the right to hire and fire the worker?
15. Is there a profit or loss possibility by the worker?
16. Does the worker have a significant equipment investment?
17. Does the worker perform services for more than one organization simultaneously?
18. Are the worker’s services available to the general public?
19. Is the worker legally obligated to satisfactorily complete the job?

ADDITIONAL RESOURCES