How to run a trade association

Running a trade association is no easy task. It requires an organized structure, tax compliance and following state and federal guidelines. Money must be managed properly, and transparency to members and regulators is a must.

These are some of the rules and best practices required to operate a nonprofit 501(c)6.
• Produce a monthly financial statement, comparing budget to actual expenditures done on an accrual basis.
• File an annual tax return Form 990.
• Adopt a budget prior to the organization's fiscal year begins.
• An annual review of the organization’s financial books is recommended for nonprofits of a certain size.
• Maintain insurance policies for the board of directors.
• Maintain a general liability insurance policy.
• Have bylaws that are updated regularly.
• Update the Statement of Information submitted to the state annually.
• Establish articles of incorporation. 
• Conduct regular board meetings and record minutes on all actions taken.
• Elect board members and officers annually or as specified by your bylaws.
• Create an annual strategic plan.
• Maintain and update all records of all contracts and communication related to the organization.
• An executive director is recommended to oversee administration to free up volunteer board members to do the work needed by the association.

There will be things unique to each individual trade association, but those are up to the board.

Professional Exchange Service Corporation can help. Our company provides state-of-the-art communications and information services and administrative management for nonprofit membership associations and for-profit corporations. For more information, call 559-228-6140.