Companion Organization to Provide Future Fundraising Mechanism

By Bill Herman, CPM
townadmin@townofauburnnh.com

After first being suggested by former AACPM Treasurer Ed Burt of North Carolina nearly five years ago and being approved by House of Delegates votes in 2005, 2006 and 2007, the AACPM Board of Directors has taken the steps necessary to establish a separate, non-profit entity dedicated to furthering the education of CPMers.

In October 2007, the Certified Public Manager® Education Foundation has been structurally established as a New Hampshire non-profit corporation.

More formal organizational details and recognition by the U.S. Internal Revenue Service as a 501(c)(3) charitable entity are the first orders of business for the Foundation’s initial Board of Directors. We hope this work will be accomplished by the time the 20th Annual AACPM Professional Development Conference is held in Columbus, Ohio in September 2008.

The Foundation is intended to make it easier for the AACPM to solicit and receive financial donations or seek grants from individuals, businesses or other entities that may hesitate to make a contribution that might not be fully tax deductible under IRS regulations. The AACPM and most of our member societies are established as business associations under IRS code 501(c)(6). For some charitable or corporate entities, this does not provide the full tax-deductible advantage as making a contribution to a 501(c)(3) entity would.

“The object of the Certified Public Manager® Education Foundation is to provide for professional development and education opportunities for members of the American Academy of Certified Public Managers® (AACPM) and its chartered Member Societies by supporting enhancements to the annual AACPM Professional Development Conference; providing financial sponsorship of the “Leadership Institute” program for AACPM members; providing financial resources for scholarship programs; or other related programs that are sanctioned through the American Academy of Certified Public Managers®,” according to the Articles of Agreement filed with the New Hampshire Secretary of State.

While intended to provide potential support and assistance to the AACPM, there is no reason why the same could not also be extended for member societies.

Approval for the filing of the appropriate paperwork for the initial establishment of the Certified Public Manager® Education Foundation came at the AACPM Board of Directors meeting held in Madison, Wisconsin in September following the Annual House of Delegates meeting.

The Foundation will be governed by a five-member Board of Directors to include the sitting President and Treasurer of the American Academy of Certified Public Managers® and three other Board members to be elected to staggered three-year terms by the Presidents of the Certified Public Manager® member societies chartered by the AACPM. For the initial establishment of the Foundation, however, the articles of agreement provide that three individuals will be appointed by the AACPM Board of Directors in order to establish the staggered terms of office.

Effective January 1, 2008, the initial Foundation Board will be seated. Then AACPM President Gregory Hyland of Arizona and AACPM Treasurer Larry Gordon of Arizona will serve in the designated AACPM positions on the Foundation Board of Directors. Appointed to staggered terms on the Board include Ron Buchholz of Wisconsin, one-year term; Sharon Kelley, CPA, of Wisconsin, two-year term; and Bill Herman of New Hampshire, three-year term.

There is considerable work ahead for the initial Foundation Board before the new entity is in any position to be operable. The potential benefits of the Foundation will be realized in future years.

© Copyright 2007, American Association of Certified Public Managers®