Member Engagement – Attendance, Participation, Location

  • Holiday Social Event: Build A Bear – went to the store in the mall and they sent an employee to bring the materials to the site; people come to the December holiday event to build a bear to donate to fire fighters, to give to kids in distress. Involve SHRM as well as local media. Have fire chief there to receive the bears and take them back. Objective to reengage members. Chapter is paying for the bears.
  • Membership Committee does follow up with members at 3 months after renewal or join date IF the person has not yet participated in an event or meeting. This is via phone (though you may end up leaving a lot of voice mail messages). Other chapters send handwritten notes. The idea is to engage them earlier in the year rather than wait until dues are “due” and then ask them to renew while asking how to engage them at the same time.
  • Survey:
  • Is GSHRM meeting your expectations as your professional HR association? Why or why not?
  • What is one thing we can do to improve your experience?

Attendance at Meetings

  • One on-site meeting every quarter. All others are virtual. Getting speakers to allow us to video them or do it from their office. Dilemma: how do we charge for this? Same company, sharing. Formal videographer that wanted to trade services.

Networking

  • Connection in the community / want networking, but no one shows up / covey – don’t spread the wealth.
  • World Café – table topics
  • Number the tables – went okay, but didn’t want to do it every month.
  • Board members try to walk around and mingle to help get the conversations going.
  • Tried cards on the table, related to meeting topic.
  • Held a series of separate networking events outside of regular meeting. Engaged other business organizations outside of SHRM. Moved the location around to appeal to a variety of professional’s office locations.

Member Incentives

  • If member renew on time, the chapter enters their name in a drawing; the chapter will pay for 3 national memberships every year.

SHRM Resources

  • SHRM New Member Webinars – done twice per year – we can publicize this.
  • SHRM still has the mailing list that they can send out, apparently form is on the VLRC – unlimited request list. Can only use this list once per specific mailing.
  • 2 Emails per year to promote events
  • Communities Tab: box for city, state, zip code – the local chapters and student chapters should show up.
  • SHRM Referral – before December 15th, using code FRIEND16, that person received $15 discount and referrer will receive $20 Amazon gift code if they join.
  • Lowest rate for SHRM annual conference until February 3rd, rate is $995. Not as a gift but as a reward and recognition for volunteer leaders.
  • For 2017, chapters will receive $20 for each member that is re-certified (payment is made the following January)
  • Preferred Provider renamed to Re-certification Provider (ours is Stephanie Brown).
  • Student Case Competition in Spring – we can promote to our membership for virtual or in-person volunteers. Also some chapters will sponsor a student to attend. SHRM would like to know if we sponsor a student. . Every year they max out with waiting lists.
  • There will be a $9 dues increase for next year ($199 year).
  • Printing Portal program: brochures, flyers, post cards, business cards – download and pay to print. Co-branded materials – visit SHRM Store.
  • Member2Member platform – members can pariticipate – a place to find case studies, content, etc.
  • January 31st – SHAPE application due; March 15 – SHAPE Excel Award application.

Non-dues Revenue Ideas

  • Paid E-blast with opt-out message
  • Usually allow one to two per month
  • Can’t conflict with chapter or national SHRM black-out periods
  • Can’t conflict with upcoming chapter programs
  • San Diego (600-700 members) charges $500 per message. A large chapter (300-500) mentioned charging $200 per message.
  • Live Webinar, recorded for future purchases
  • Free for members, charge $20 for nonmembers
  • HR Basics Course – in person, 2 Day Course
  • Offered for members and nonmembers, targeted toward new HR staff and supervisors/managers of staff
  • Designed and facilitated by volunteers
  • Beyond Basics Course – in person, quarterly (4 afternoons), as a follow –up or second step to the HR Basics Course
  • HR Job Postings – use sites called YM or Jobing.com, also known as Recruiting.com. They host the job board and the organization gets a percentage. Hawaii chapter made $40,000 last year from percentages (not typical).
  • Benefits and compensation survey (charged $295)
  • Restructure sponsorships to include banner ad on website, 2 e-blasts, announcements, table tents at meetings. Also sell a la carte.

Financial Management Session

  • No money, no mission! Must have a profit in order to operate a business and serve the needs of the members. Nonprofit doesn’t mean no profit.
  • 501(c)6 – charitable donations are not deductible
  • Business expense deduction for dues except for any dues apportioned to lobbying
  • Free to do lobbying
  • UBI – Unrelated Business Income. Most states will require a business license. There are certain business related items that are taxable.
  • 990-T this is a form for advertising. IRS gives a $1000 credit. Like an ad in a program or a website ad. Just a logo would be a sponsorship, which is different than advertising.
  • Sales Tax: a chapter must collect sales tax when they make a sale in the state

Federal

  • Federal Tax ID number: you can look it up at IRS
  • Federal Tax Reporting: Form 990, 990EZ, or 990-N dependent on size.
  • 15th day of the 5th month after the end of the chapter’s fiscal year with extension provisions up to 6 months
  • This is a public document.

1099-MISC must provide to contractors, speakers, services above $600 and also send it to IRS.

Policies

  • Expenditure Policy: what you will pay for
  • Records Retention / Disposal Policy: requirements may very by state. Have to keep tax returns forever. Bank statements are generally 7 years. In our SHRM Chapter Mgt Guide.
  • Reserve Policy
  • Standard is 50% to 200% of annual operating expenses
  • IRS does not restrict how much a non-profit can have in reserves
  • Spending Policy – how much of your investment income can you spend
  • Investments Policy – how money can be invested.

Business Bank Account.

  • Open separate bank account for the business
  • Someone other than a check signer should receive the bankstatement
  • Reconcile it every month

Cash Receipts

  • SHRM does payments via direct deposit, so we need to let them know our bank account
  • Need to send acknowledgement if a contribution is greater than $250

Cash Disbursements

  • Have a reasonable number of check signers
  • Set dollar amount limits for check signers
  • Use a positive pay service
  • Written policies and procedures on expenditures
  • Formal documentation for reimbursement
  • No checks made out to “Cash”

Financial Reporting

  • Needed for both regulatory filings and management of operations
  • Cash v. Accrual
  • Cash is the checkbook approach
  • Accrual recognizes transactions when they occur
  • Statement of Financial Position (Balance Sheet)
  • Statement of Activities (Income and Expenses)
  • Statement of Cash Flows
  • Chart of Accounts – include descriptions. Try to use a numbering system for your accounts; otherwise you may have duplicate accounts created by multiple successor treasurers. A chapter volunteered that they set this up to match the 990 form categories.
  • Annual Budget – compare to actual. SHRM does a spring and fall forecast as well…
  • Cash flow projections – dues on a calendar year, conference, etc. – don’t want to have to borrow money and have enough to pay expenses at end of year.
  • Create a regular reporting period (for us, calendar year)

Making the Job Easier

  • Association Management Company (but can’t step away – they work for you, and you must ensure it is run properly)
  • Software programs
  • Quicken
  • Quick Books
  • Microsoft money
  • Peachtree Complete Accounting
  • Local CPA Firms

Independent Audits and Alternatives

  • Best interests of chapter/council
  • Compilation
  • Review
  • Agreed-upon procedures
  • Members’ Audit
  • Form 990

Investing

  • If your chapter is investing, have a committee, rest went too fast to right down

Insurance

  • General Liability Insurance
  • Directors’ and Officers’ Insurance
  • Event Interruption / Cancellation Insurance
  • Investigate competitive pricing, SHRM does not provide insurance to affiliates
  • ASAE/AON:

Ways to Increase Non-dues Revenue

  • Invest
  • Make a profit on chapter meetings
  • Establish relationships with law firms, other associations, universities, etc. to invite them to attend at nonmember price
  • Sponsors and advertisers for meetings
  • Earn more CFSP through member drives / LMO to SHRM recruitment / renewals / at large to chapter recruitment / SHRM Certifications (through Dec 2016)
  • Some states offer profit sharing for conference attendance
  • Wage and benefit surveys
  • Sell logo items (UBIT)
  • Send out email blasts for paying services @$200 per email
  • Charge extra if they pay at the door.
  • Drop membership dues to $25 for year if SHRM member; 75 if non SHRM member; 150 if vendor
  • Supervisor Training for the Community – geared toward non HR professionals – second largest money maker for the year. Also sell sponsorships. 150 for all day training. Speakers do it for free. Local law school provides free space.
  • Sell job postings on the website
  • Anyone sell corporate memberships? Two tiers – SHRM members pay $40. Non SHRM members pay 150. Corporate membership pay $400 for 10 members. Sell about 10 this year (smaller sized chapter). Recognize them in the newsletter. Or if all are SHRM members, they get the reduced fee but the recognition of the $400 level.
  • Packages of monthly meeting sponsorships.

Qualified Sponsorships

  • Advertising is generally taxable as UBI
  • But, qualified sponsorship payments are exempt from UBI Tax
  • To qualify as such a sponsorship, the payer must receive nothing in return for the sponsorship payment other than:
  • Acknowledgement of sponsorship
  • Display of sponsor name and logo with chapter event or activities
  • Listing of sponsor products and services (but not prices or advertising or comparative statements)
  • Link to sponsor home page
  • If additional benefits such as placement of ad are received, value of ad should be identified and is taxable (unless less than 2% of sponsor payment); rest of sponsor payment is still exempt from tax.
  • The right to “pitch” company services for 5 minutes would be taxable advertising; the right to speak at event on a topic, but not “sell from the podium” should not be taxable.

GSHRM really needs to place an advertising value on the 5 minute speaking opportunity. This should be valued at about $450 (balance over gold $500 price plus cost of 2 extra lunches).

SHRM’s Online Guide to Financial Management

This comprehensive guide is available online in the Volunteer Leaders’ Resource Center at