What Type of Organization is an Association?
First, an Association is an organization that has more than one member and a paid membership manager. It is tax-exempt. It is also a nonprofit. If you’re considering starting an association, it’s important to understand who you’re targeting. Knowing this information will help you create resources for members and find supporters. The American Fact Finder is an excellent resource for researching demographics.
Associations are tax-exempt
Nonprofit organizations such as associations are usually tax-exempt organizations. However, there are certain restrictions that must be met before an association can become tax-exempt. Notably, federal income tax exemption for associations is more strict than that for nonprofit corporations. In most cases, associations qualify for tax-exempt status under one of the 25 subsections of Section 501(c) of the Internal Revenue Code. Specifically, most associations qualify under Sections 501(c)(3) or (c)(6). There are also smaller groups of associations that qualify under Section 501(c)(4).
Associations can be tax-exempt if they generate more revenue than they spend. However, nonprofit organizations cannot distribute their net earnings to their shareholders or accumulate equity appreciation for private gain. Instead, their purpose is to benefit members and the public. To achieve this, associations are required to dedicate their earnings to furthering their purposes.
Organizations recognized under IRC Section 501(c)(3) must file an annual information return with the IRS. The type of information return filed will depend on the organization’s gross receipts and assets. In addition, most tax-exempt organizations must file electronic notices with the IRS and file annual information returns for three consecutive years.
They must have multiple members
Associations must have multiple members in order to function properly. In addition, the board of directors must have a process for voting. These processes may include absentee ballots or show-of-hand voting. In addition, voting may also be conducted electronically. However, the board of directors must adopt specific guidelines for electronic voting.
They must have a paid membership manager
Paid membership management software allows associations to effectively reach their members. These software programs provide marketing tools for producing engaging content, allowing members to customize what they see. They also offer contact segmentation and targeted marketing. Popular applications used by association managers include MailChimp, Google Analytics, Slack, and SurveyMonkey. These applications should integrate with one another and help streamline operations and improve rankings.
While the job of a membership manager varies by association, the essential role is to increase member engagement and grow membership. This requires thorough knowledge of the industry and the needs of members. A membership manager must be aware of changes in the membership industry and know which opportunities are available to attract new members. These primary duties make a membership manager one of the most important people in an association.
Paid membership management software helps associations collect dues, track user information, and send email reminders before renewal. Paid Memberships Pro also provides site administrators with membership approval authority. Associations cannot function without members. Paid membership software will help you maintain a strong member base.
They are non-profit
Associations are groups of people or organizations who share common interests or goals. They provide information and networking opportunities to their members. They also provide standards and rules for members to follow. Often these rules are in the form of ‘codes of conduct’ or ‘best practices.’ By joining an association, you are agreeing to follow these guidelines, and may be eligible for certifications or additional training.
These organizations also produce publications that are distributed to members only, such as newsletters and magazines. These publications often feature news about the association and the industry, and they may include editorials on important topics. Depending on the type of association, these publications may be distributed only to members, or they may be published online.