1. Alexandria, VA July 2009

2. Responsibilities of a Leader Determine the organization’s mission Select the chief executive and assess their performance Safeguard the assets of the organization Ensure effective strategic and organizational planning Ensure adequate financial resources Exercise fiduciary responsibility and oversight Determine the organization’s programs and services Enhance the organization’s public standing Ensure legal, moral, and ethical integrity Recruit and orient new board members and assess its performance

3. Fiduciary Responsibility Duty of Care Duty of Loyalty Duty of Obedience Reliance on Experts

4. Understanding Your Organization Branches are typically recognized under 501 ( C )( 3 ) or (6) of the Internal Revenue Code. Once recognized, branches are exempt from paying federal and state income taxes and federal unemployment tax. Branches are not exempt from payroll related taxes, sales tax, and unrelated business income taxes. Branches of ACA are membership organization with approximately 50-75% of annual revenues generated from membership dues. Non dues revenues include: conference related revenues; professional learning opportunities; sales of publications and video tapes; investment revenues; advertising revenues, journal subscriptions; etc. Branch operating budgets will vary, depending on size. Salaries, professional fees, payroll taxes, staff benefits, printing, postage, travel related costs, and occupancy expenses typically represent the organization’s largest annual expenses.

5. Common Leadership Challenges Regulatory Issues – Failure to comply with federal and/or state laws and regulations Business Issues – Failure to understand and/or follow generally accepted business practices Contractual Issues – Failure to fully understand or properly calculate the terms of a contract prior to its executiom.

6. Regulatory Challenges Incomplete or inaccurate tax filings Failure to file appropriate returns Failure to file returns in a timely manner Failure to apply for tax exemption Independent Contractor vs Employees Incomplete and inaccurate financial records Failure to properly report UBIT Private Inurement Inaccurate reporting of lobbying expenditures Failure to disclose related party transactions

7. Business Challenges Inadequate reserves Inadequate financial reporting Inadequate budgeting practices Failure to properly analyze profitability (membership) Lack of insurance Failure to invest or manage cash Lack of the segregation of duties Lack of adequate and sufficient internal controls Failure to maintain adequate records Spend money to make money mentality

8. Contractual Challenges Understanding the nature of contracts Ambiguous terms Attrition penalties or clauses Failure to fully negotiate to your benefit Multiple year contracts Bait and Switch Pricing One sided cancellation terms Cancelling a contract or buyouts

9. Current Issues Facing Branches Sharing EIN Failure to receive division accounting Not tax exempt Have not filed appropriate tax returns Division separating Falling membership Lack of non dues revenues Increasing expenses Attrition penalties Inactive divisions

10. American Counseling Association (703) 823-9800 Richard Mozier, extension 337 rmozier@counseling.org