Executive Officer’s Report: The Inside Scoop
M. Lynne Cooper
Since the last edition of P, published in January, the association has taken two very important steps toward securing its financial future. First, we are thrilled to report that ARP finally obtained status as a 501C3 (tax exempt) organization from the IRS. This culminates discussions about the need to obtain tax exempt status dating back to the formation of the association, and thus feels like a huge accomplishment to all of us! Many thanks to all who contributed to the effort, most especially Will and Jen.
Tax exempt status is crucial to the financial health of the Association in two important ways. First, because any monies we take in in excess of our expenses will be used to fund tax exempt activities that advance the field, we will not be required to pay taxes on those monies. Moreover, our tax exempt status is retroactive, meaning that we are not subject to back taxes on any monies that were made in the past. Second, obtaining tax exempt status creates new opportunities for fund raising given that individuals and businesses who donate to the Association will be able to claim those donations as charitable contributions on their federal income tax returns.
Second, the Executive Board voted at its June meeting to work toward accumulating a financial cushion of $100,000. Part of this will serve as a cash reserve in the event of unexpected expenses, while the rest will be used as a basis for supporting awards and programs benefiting the field that the Association hopes to establish over the next few years. Although compared to some of our peer organizations, this is a very modest cushion, we believe that it is an appropriate goal for an organization of our size, and that having this amount set aside will allow us to work more effectively and creatively on behalf of the field. So we encourage you to share any thoughts or ideas you might have about how to build that cushion. Also please be on the lookout for new initiatives that will help us meet this important goal.
Finally, I would like to let all of you know that I will be stepping down as Executive Officer (XO) at the end of 2014. While that is more than a year away, it is not too soon to start thinking about whether you or someone you know would be interested in taking on this position. Serving as XO offers a wonderful opportunity to work with fabulously committed and talented colleagues, to keep you finger on the pulse of the field, and to make a contribution to the future of the Association and the field. I am happy to answer any and all inquiries about the position, should you be interested.