Club Administration – Beyond The Basics

More in depth topics for club officers and directors

• Club Boards of Directors• Bylaws and Policies• Risk Management and Insurance• Finance

Topics

• The board of directors has legal responsibility for oversight and management of the corporation

• Operational management may be delegated to paid staff

• The members of the board are elected– In a nonmember corporation, by the board

members in office– In a membership corporation, by the

members

Board of Directors

• Elected offices– President [legally required]– Secretary or Secretary/Treasurer [legally

required]– Vice President –Members at Large

• Should definitely NOT be elected– Director of Coaching–Website manager

Board of Directors

• May be elected, but probably should not be:– Registrar– Age group coordinators– Uniform coordinator– Equipment manager– Field coordinator

Board of Directors

• Qualified Directors– Volunteers– Reimbursed for reasonable and necessary

expenses of being a director (travel, phone, etc.)– Not paid by the club– Not liable for board actions, except for gross

negligence• Paid staff– Hired by the board and salary set by the board– Should not be a voting member of the board

(CONFLICT OF INTEREST!)

Board of Directors

• Committees– Appoint people to chair committees to run

programs/projects • Appointed person attends board meetings and

reports to the board• Appointed person does not vote

– Authorize committee chair to spend for program/project up to budgeted amount

• Succession Planning– Committee chairs are great source for next

officers

Board of Directors

• Terms of office– Stagger terms so not all board changes over

in a single election– Consider term limits

Board of Directors

• Bylaws govern the big picture of the organization–Who are members– Officers and directors• Number• responsibilities

– Elections and appointments–Meeting quorum– Authority of board to discipline members– Authority to create committees– Amended by members at annual meeting

Bylaws & Policies

• Policies– Guide operations– Adopted by the board– Can be changed by the board– Bylaws should allow board to create, amend,

and revoke policy at a regular board meeting

– Policy should not be subject to change/creation by general membership

– Should be in writing

Bylaws & Policies

• Club should have policy for:– Team formation– Assigning players to teams– Selecting/rejecting coaches

• Standards for volunteers• Standards and agreements for paid staff

– Codes of conduct for players, parents, and coaches

– Scholarships– Payment plans – Refunds– Financial controls

Bylaws & Policies

• Risk management covers many concerns, not just criminal background checks.– Financial concerns– Equipment– Facilities– Participation in competition

• Risk comes from many different sources. Management of the risk involves recognition, reduction, and transfer of responsibility.

Risk Management & Insurance

Risk Response• Injury from portable

soccer goals falling• Mitigation: – Counter weight and

anchor when using– Education regarding

proper techniques for moving

– Safe storage when not in use

– Warning signs

Risk Management & Insurance

Risk Response• Injury from portable

soccer goals falling• Transfer of

Responsibility:– Liability Insurance– Transfer ownership of

goals to entity that owns fields or facility being used

Risk Management & Insurance

Risk Response• Theft/embezzlement

of money or property belonging to the organization

• Minimize exposure:– Lock up equipment

and other property– Accept payments by

credit card as much as possible

– Promptly deposit all cash and checks

Risk Management & Insurance

Risk Response• Theft/embezzlement

of money or property belonging to the organization

• Minimize exposure:– Adopt financial control policy

that requires more than one person to be involved in financial transactions

– Separate receiving money from depositing money

– Separate check writing from check signing

– Adopt bylaw that prevents persons from the same family having control of finances of the organization

Risk Management & Insurance

Risk Response• Theft/embezzlement

of money or property belonging to the organization

• Transfer Risk:– Purchase fidelity bond

for all persons with access to organization funds

– Purchase property insurance to cover loss of club property by theft or other means

Risk Management & Insurance

Risk Response• Personal injury from

faulty equipment or unsafe facilities

• Transfer Risk:– Make sure all

participants are registered so they are covered by medical insurance

– Keep corporation up to date so there is no personal liability of board

Risk Management & Insurance

Risk Response• Personal injury from

faulty equipment or unsafe facilities

• Transfer Risk:– Keep club membership

is up to date so liability insurance protects organization

• Mitigate Risk:– Inspect equipment and

facilities at every use– Repair or replace

unsafe equipment – Use a different

facility

Risk Management & Insurance

• The preceding slides are examples of some of the kinds of risk clubs have. Consider what risks you are exposed to and check your insurance coverage.

Risk Management & Insurance

Every year clubs run into financial problems. Sometimes it is from a catastrophic occurrence, but usually it is from problems with financial management.• Failure to charge enough to cover costs:– Club budget must include ALL costs to have

players on field– Budget should generate a reserve if all goes

well– Budget should have a margin for issues of

• Unexpected increases in costs• Inability to collect all the money due

Finance

• Revenue and expenses need to be matched– Revenue for one seasonal year should not

be used to pay expenses for the previous seasonal year.

– Example:Club rents fields from city. Club will get the bill in June for the time used during the 14-15 year from January 1. Payment is due in July. Club starts registering players for the 15-16 year in April. Club will rent fields from August 1 for those players to use in 15-16 and will pay for those fall fields in December. Club should not use 15-16 registration receipts to pay for 14-15 fields. If that is done, the club may not have money in December to pay for the fall 15-16 fields.

Finance

• Extending credit to families– Allowing payment over time is extending

credit–Make sure the agreement is in writing– The total due and the payment schedule

should be clear– Consequences of nonpayment should be

clearly stated– Be prepared to take action if payments are

not received

Finance

• Extending credit to families– OYSA will not process a player transfer over the

objection of a club if the club is owed money by the player• There must be a written agreement that shows the

obligation – The agreement must be signed. – Acceptance of an ELA is OK

• The amount due must be clearly stated• A club may agree to allow the transfer anyway, but

should be prepared to accept nonpayment of any unpaid balance• If the amount due is paid, the club must release

the player

Finance

• Failure to meet government requirements– A corporation that does not file tax returns

faces penalties • Fines based on a percentage of gross revenue• Revocation of exempt status if no returns filed for

3 years– A corporation that does not file its annual

report with the Oregon DOJ faces penalties of up to $2,000 per failure• Board members and officers who knew of the

failure to file may be personally penalized up to $2,000

Finance

• Failure to meet government requirements– A corporation that does not maintain its filing with

the Secretary of State loses the right to use Oregon courts

– The officers and directors of a corporation that loses its corporate status lose protection from personal liability for the debts of the business

– A corporation that does not maintain its Assumed Business Reservation may not properly use that name to conduct business and may lose rights to use of the name

– A corporation that fails to maintain its corporate status may lose its membership with OYSA

Finance

• Failure to pay bills– Failing to pay OYSA bills can cause• Loss of access to OYSA Software• Loss of membership• Loss of insurance for the club• Loss of ability to enter teams in OYSA sanctioned

competitions– Failing to pay other vendors can leave the

corporation unable to function

Finance

Questions?Communication Education

Collaboration

• Corporation/ABN Status Check: http://egov.sos.state.or.us/br/pkg_web_name_srch_inq.login

• Corporation Division nonprofit corporation forms online: http://sos.oregon.gov/business/Pages/domestic-nonprofit-corporation-forms.aspx

• Secretary of State nonprofit services: http://sos.oregon.gov/business/Pages/nonprofit.aspx

• Employer’s Guide for doing business in Oregon: http://sos.oregon.gov/business/Documents/business-guides/employer-guide.pdf

Resources

• Oregon DOJ – Charitable Registration: http://www.doj.state.or.us/charigroup/howtoreg.shtml

• Oregon DOJ – Annual Report: http://www.doj.state.or.us/charigroup/howtorpt.shtml

• Oregon DOJ – Guides for Charities & Boards: http://www.doj.state.or.us/charigroup/pages/howto.aspx

• Oregon DOJ – Search Charities: http://www.doj.state.or.us/charigroup/Pages/searchcharities.aspx

• Oregon DOJ – Charitable Gaming: http://www.doj.state.or.us/charigroup/gaming_oregon.shtml

• Oregon DOJ – Nonprofits Laws: http://www.doj.state.or.us/charigroup/howtolaw.shtml

Resources

• IRS – Exempt Organization Select-check: http://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check

• IRS – Exempt Application, Form 1023-EZ: http://www.irs.gov/uac/About-Form-1023EZ

• IRS – Exempt Application, Form 1023: http://www.irs.gov/uac/Form-1023,-Application-for-Recognition-of-Exemption-Under-Section-501%28c%29%283%29-of-the-Internal-Revenue-Code

• IRS – Tax Information for Charities & Nonprofits: http://www.irs.gov/Charities-&-Non-Profits

• Nonprofit Audit Guide: https://www.councilofnonprofits.org/nonprofit-audit-guide

• Guidestar: http://www.guidestar.org/

Resources

• OYSA – Club Membership Application: http://oysa.bonzidev.com/doclib/Club_Membership_Form.pdf

• OYSA – Club Bylaws Template: http://www.oregonyouthsoccer.org/assets/administrators/Bylaw_Template.doc

• OYSA – Financial Policy Template: http://www.oregonyouthsoccer.org/assets/administrators/Bylaw_Template.doc

• OYSA – Risk Management Information: http://oysa.bonzidev.com/risk_management

Resources