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Head problems off at the pass by establishing proper component and affiliate guidelines.
WHEREVER YOUR ORGANIZATION RESIDES IN A MULTITIERED organizational structure; however creative you've been in establishing revenue-generating subsidiaries or affiliated corporations; and however persuasive you've become with regulators, donors, and beneficiaries, a financial failure or ethical breach in one part of the association, such as a chapter, can create a publicity and brand crisis for the whole organization. However, establishing effective processes, reviews, and controls can protect against potentially destructive situations.
What follows are eight questions that can help guide multitiered organizations-those that use affiliate, chapter, or member organizational structures-in creating policies that maximize every tier's interests and protect every tier's rights.
1. Are there uniform affiliation agreements? Identity is central to an organization's mission, structure, branding, and overall success. An organization must protect its identity through uniform affiliation agreements, binding contracts between the national organization and its affiliates. Affiliation agreements protect use of the organization's name, logo, and other intellectual property; ensure that all affiliates abide by the same requirements; and maintain the national organization's image, voice, and mission. If affiliates violate the agreement, they may face sanctions ranging from loss of privileges or funds held in abeyance to possible disaffiliation.
According to Brandon Macsata, president, Macsata & Associates, a public affairs consulting firm based in Miami, "Conflicts are less likely to arise when there are uniform affiliation agreements. But when conflicts do rear their ugly heads, affiliation agreements provide protection to all entities. Without them, mixed signals emerge, credibility suffers, and an organization's ability to impact public policy and public attitudes is diluted."
An effective way to combat internal struggles in a multitiered organization is to routinely review and update affiliation agreements, paying particular attention to new systems, technologies, procedures, and enforcement requirements. (For more information on this topic, see "Agreements Between National Associations and Their Components," in the April 2004 issue of ASSOCIATION MANAGEMENT.)
2. Does the national organization have a process to monitor and enforce the proper use of the organization's intellectual property? Enforcing the consistent use of an organization's name and logo is especially important in marketing and fundraising efforts. Christine Harris, chief operating officer, HalfthePlunet Foundation, Washington, D.C., believes "allowing local affiliates to misuse or...