April 2023 Update:
Several of your chapters are preparing to shift their financial operations to IABC HQ. We are excited about the transition and wanted to provide you with full information. 14 chapters or regions have selected to manage their financials through IABC HQ!
You can review the recording on process for transitioning your chapter or region’s financial operations below.
Link: https://smithbucklin.zoom.us/rec/share/RkMhHMippTlgibHY-3e-5JvzvfCL-SojT9Hw_2iVBFe78tc578bVm-BkyrwlXZk.FfinsTSWVFb66HGU
Passcode: J!y*DK72
Attached materials include:
This was a request of the chapters and regions who were moving to the centralized model.
All chapters leaders are invited to join a Q&A session about the transition on 20 April at 2:30 CT. Register now.(https://smithbucklin.zoom.us/meeting/register/tJIpcumurT8pHtGVI_y3viQAAQbnj3n-iD3L#/registration)
Included in the information shared, there is a check list of information needed to transition your financial operations. You can submit that information here: https://iabc.secure-platform.com:443/annualreport/solicitations/190/home
January 2023 Update:
Over the 2020 – 2022 fiscal years, IABC has experienced a period of accelerated change due to the pandemic and economic conditions. A number of US chapters in particular struggled to fully function during the pandemic – and some chapters’ struggles pre-dated the pandemic. The International Executive Board has decided to confront waning membership and engagement in those chapters that are not meeting the criteria necessary to be considered “in good standing.”
There are three discrete categories for US chapters based on the criteria within the vitality report:
- Dormant
- Struggling
- Good Standing
In December, we shared with chapter and region treasurers that a new financial model for US chapters and regions will be available to those that have been categorized as in good standing or struggling. Full details of the model can be found in the attached deck and document. The document also lists which category each chapter is in. We also have included a recording of the deck with further details here:
https://smithbucklin.zoom.us/rec/share/44nQLU1T2aQ9bbjR98j8ur3-W0cnKCowu2s6nSZk8bhNIuVzAvNlgkXhDGr3TqQ.1IJ3YCwyU1FHutVc
Passcode: iQ3aRBk$
All chapters that are not considered dormant have the option to centrally manage financials through the international organization. With financial and administrative functions centrally managed through International, chapters can take advantage of the following benefits and opportunities:
- Unburden volunteer leaders from most of the financial administrative workload to further activities that advance IABC’s mission, build relationships, and focus on programmatic activities at the region and chapter levels.
- Increase purchasing power through economies of scale in providing enterprise access to Zoom, web hosting, and digital/email marketing platform.
- Reduction in administrative costs for chapters and regions.
- Gain access, as chapters and regions, to International’s accounts payable system (Concur) to submit payment requests and reimbursements. The use of Concur will be free to all chapters that utilize a centralized model.
- Experience streamlined financial reporting and forecasting. Each chapter and region will receive a monthly statement of activities and will be part of the forecasting process.
- Chapters and regions will be part of the annual audit process.
- Remove obligations for 990 gap filings.
- Provide the ability to collectively be in compliance with state and local requirements.
With a reduction in administrative burdens, it provides a way to offer members more modernized volunteer opportunities (EX micro-volunteering).
Chapters in good standing will have the option to move to the centrally managed model, while chapters that are categorized as struggling will need to work with headquarters staff to arrange to move to the new model by May 2023.
Chapters in good standing will need to notify IABC headquarters by 21 February whether they will continue with their current model or move to the centrally managed model.
Please note that chapters that decide not to move to the centrally managed model will need to work with a tax professional on their gap filings. It is estimated that the gap filings will cost at least $6,000.
In order to make this process more efficient, please complete your Annual Report by 28 February: https://iabc.secure-platform.com:443/annualreport/solicitations/181/home. The finance report template can be found on Leader Centre.
Attached materials include:
IABC Treasue Orientation
IABC Chapter Plan