Principles of Affiliation
Principles of Affiliation

Principles of Affiliation

Background Information

  • The Affiliate Future Directions Task Force was charged with revising the former Affiliate Agreement
  • Previously, the affiliate’s relationship with ADA was governed by an agreement outlining the standards for ADA/affiliate operations and clarifying the legal and fiduciary responsibilities between ADA and each affiliate
  • The Principles of Affiliation was reviewed and approved by the Board of Directors at their February 2007 meeting

As with the former affiliate agreement, the Principles of Affiliation will serve the following purposes:

  • Clarify the legal and fiduciary responsibilities between ADA and the affiliate
  • Limit exposure of the organization, officers, directors and members to legal and financial liabilities
  • Ensure compliance with the law
  • Promote and protect the integrity and interests of ADA and the affiliates through the establishment of consistent business practices

Significant revisions:

  • Non compliance with the provisions of the Principles of Affiliation will result in retention of the affiliate rebate (the actual rebate tied to outcome parameters will not take effect until August 2008)
  • Annual Affiliate Report and Assessment Form
  • Statement in an Annual Report affirming policies are in place and the affiliate has taken steps to ensure all district members are ADA members
Affiliate reporting requirements: 
  • Certificate of Good Standing or signed letter from the affiliate president stating that the affiliate is in good standing with the state by August 1 of each year
  • A copy of federal (IRS form 990 or 990 EZ) and state income tax filings for affiliate and foundation (if applicable); or if affiliate has less than $25,000 in gross revenue, a copy of the annual notice with the IRS containing basic contact and financial information submitted by August 1 of each year
  • Principles of Affiliation Agreement signed by President and treasurer by August 1 of each year
  • Affiliate Annual Report and Assessment submitted by August 1 of each year
  • A statement included in the Annual Report and Assessment, affirming policies are in place and Affiliate has taken steps to ensure all district members are members of ADA

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