What are the differences between Local Sections and ADLM-managed Sections?
Local Sections are:
- regionally organized groups of ADLM members.
- independent corporate entities.
- sections that were formed prior to the ADLM bylaws change in July 2016.
ADLM-managed Sections are:
- regionally organized groups of ADLM members.
- internal units of ADLM (similar to Divisions).
- any new section formed moving forward.
Are Local Sections required to become an ADLM-managed Section?
No. Local Sections have the option to dissolve and re-form as an ADLM-managed Section. All new sections that are formed will be formed as ADLM-managed Sections.
What are the benefits of becoming an ADLM-managed Section?
- Increased time to focus on program content and development.
- More opportunities for professional growth for volunteer leaders.
- Significant reduction of administrative responsibilities:
- ADLM-managed Sections will not have checking accounts
- ADLM-managed Sections will not sign contracts or any legal agreements.
- ADLM-managed Sections will no longer file a Report of the Treasurer. Section leadership will submit an annual budget, similar to ADLM Divisions.
- ADLM-managed Sections will not file separate state or federal taxes.
- ADLM-managed Sections will not be required to file annual or bi-annual state corporation commission reports.
- ADLM-managed Sections do not need to maintain separate bylaws.
How does a Local Section dissolve and become an ADLM-managed Section?
Local Sections must dissolve as a corporation and terminate its independent legal status. Corporations are regulated under state law, so the dissolution process can vary.
- The Local Sections should follow the dissolution guidelines set in their bylaws or regulations outlined by the state in which the Local Section is incorporated.
- ADLM staff will assist Local Sections with the process.
- Once dissolved, the Local Section must transfer funds remaining in their treasury to ADLM.
- ADLM will hold and track the funds for the newly formed ADLM-managed Section.
Does the funding structure change for sections that remain Local Sections?
No. Local Sections that choose to operate as independent entities will continue to receive ADLM allotments once a year after meeting all the funding requirements, such as IRS reporting, election of officers and submission of annual and treasurer’s reports.
What is the funding structure for ADLM-managed Sections?
- ADLM-managed Sections will submit a budget in a manner similar to all other ADLM programs, including ADLM Divisions. Budgets must include all anticipated expenses for educational programs as well as items such as awards and travel grants.
- As part of the overall ADLM annual budget process, all programs and budgets are presented to the Finance Committee for funding consideration and to the Board of Directors for approval.
How will the funding structure change for Local Sections that become ADLM-managed Sections?
Local Sections that dissolve and become ADLM-managed Sections will continue to receive their annual allotments.
- Programs that are in excess of the allotment will be paid by drawing down funds transferred to ADLM in the Local Section’s name.
- Once those funds are depleted, as part of the overall ADLM annual budget process, programs exceeding the annual allotment will be presented to the Finance Committee for funding consideration and to the Board of Directors for approval.
- ADLM-managed Sections may also pursue sponsorships or charge registration fees as needed to offset program costs.
- As with other ADLM programs, unused funds from ADLM-managed Sections will remain with ADLM for general ADLM/ADLM member use in future years. This does not include the separate Local Section treasuries brought over upon dissolution. This applies to the annual allotments for ADLM-managed Sections only.
What is the governance structure of an ADLM-managed Section?
- ADLM-managed Sections are required to elect ADLM Section officers.
- ADLM-managed Sections are not required to prepare Bylaws. ADLM will provide standard policies and procedures.
- ADLM-managed Sections will not file a Report of the Treasurer.
- ADLM-managed Section leadership will submit an annual budget.
Is there a deadline for a Local Section to become an ADLM-managed Section?
Local Sections are encouraged to explore transitioning. There is no deadline for Local Sections to become ADLM-managed Sections.
