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2011 ISAE Annual Convention & Trade Show REGISTER TODAY AT www.isae.com! Executive Edition Executive Edition www.isae.com Volume XX Issue 5 2010 Illinois Society of Association Executives Newsletter Illinois Society of Association Executives 3085 Stevenson Dr., Suite 200 (62703) P.O. Box 11058 Springfield, Illinois 62791-1058 217.529.6838 FAX 217.529.9120 www.isae.com in this issue ... 2011 Annual Convention & Trade Show ........ 1 Calendar of Events ......................................... 2 Message from the Executive Director ............... 2 CVBs: A Win-Win Proposition ......................4 New PAC Law .............................................. 8 NIU Association Resource Corner ................... 9 Quick Fixes ................................................. 11 ASAE Inroads ........................................ 12-15 Legislative Directories - Order Now .............. 16 Register Now for the 2011 Annual Convention and Trade Show! January 18, 2011 - Springfield, IL www.isae.com Registration is now open for the 2011 ISAE Annual Convention & Trade Show scheduled for Tuesday, January 18, 2011 at the President Abraham Lincoln Hotel & Prairie Capital Convention Center in downtown Springfield! The convention theme this year, Association Excellence: In Tune with the Times, will boast a music-inspired theme and will offer interactive educational sessions on an array of topics that will ‘strike a chord’ with your everyday needs—both personally and professionally. This year’s convention will also showcase a new agenda! This new format will make it easier for attendees and exhibitors to participate and be away from respective offices. Attendees can check in at the office prior to heading to the event, and exhibitors will not have to come in the night before to set up. This more compact event should draw a higher attendance with additional value to all participants For your convenience, there are three ways to register for the conference. You can go to the ISAE website (www.isae.com) and download the registration brochure, fill it out, and fax or email it as directed, or you can register online with a credit card. Please note that in an effort to minimize our environmental footstep, we will not be printing and mailing conference materials this year. Everything is accessible through the website. Continued on page 5 ISAE Legislative Directories – Place Your Order by December 31st ISAE is again preparing to publish its Legislative Directory of the General Assembly of Illinois. For 40 years and counting, ISAE has prepared this pocket reference guide that ISAE members purchase for use by their own members. This year the directory will include maps of the IL Capitol Offices along with pictures, e-mails and administrative office contacts. The scheduled delivery date is March 15, 2011. This date is contingent upon ISAE going to print by January 31, 2011. If your organization places an order, but holds their legislative advocacy day prior to the delivery of the directories, ISAE will provide you a copy of the insides that can be duplicated for use by your volunteers. The directories will again be ordered on-line at www.isae.com and orders may be placed beginning November 15th. There will be an increase in price, the first increase in over four years, and a delivery charge will be assessed. All directories will be shipped UPS directly from the printer, as they are available, in an effort to provide the most immediate delivery date. Customized covers may be ordered directly from the printer. The directory will be printed by ISAE Member, Tailored Printing. ISAE is expecting to print approximately 55,000 copies. Don’t forget to order yours for 2011 and 2012!

Transcript of Executive Edition - c.ymcdn.com · 2011 ISAE Annual Convention & Trade Show REGISTER TODAY AT !...

2011 ISAE Annual Convention & Trade Show REGISTER TODAY AT www.isae.com!

Executive EditionExecutive Editionwww.isae.com Volume XX Issue 5 2010 Illinois Society of Association Executives Newsletter

Illinois Society of Association Executives

3085 Stevenson Dr., Suite 200 (62703)

P.O. Box 11058Springfield, Illinois 62791-1058

217.529.6838 FAX 217.529.9120

www.isae.com

in this issue ...2011 Annual Convention & Trade Show ........1

Calendar of Events .........................................2

Message from the Executive Director ...............2

CVBs: A Win-Win Proposition ......................4

New PAC Law ..............................................8

NIU Association Resource Corner ...................9

Quick Fixes .................................................11

ASAE Inroads ........................................ 12-15

Legislative Directories - Order Now ..............16

Register Nowfor the

2011 Annual Convention and

Trade Show!January 18, 2011 -

Springfield, ILwww.isae.com

Registration is now open for the 2011 ISAE Annual Convention & Trade Show scheduled for Tuesday, January 18, 2011 at the President Abraham Lincoln Hotel & Prairie Capital Convention Center in downtown Springfield! The convention theme this year, Association Excellence: In Tune with the Times, will boast a music-inspired theme and will offer interactive educational sessions on an array of topics that will ‘strike a chord’ with your everyday needs—both personally and professionally.

This year’s convention will also showcase a new agenda! This new format will make it easier for attendees and exhibitors to participate and be away from respective offices. Attendees can check in at the office prior to heading to the event, and exhibitors will not have to come in the night before to set up. This more compact event should draw a higher attendance with additional value to all participants For your convenience, there are three ways to register for the conference. You can go to the ISAE website (www.isae.com) and download the registration brochure, fill it out, and fax or email it as directed, or you can register online with a credit card. Please note that in an effort to minimize our environmental footstep, we will not be printing and mailing conference materials this year. Everything is accessible through the website.

Continued on page 5

ISAE Legislative Directories – Place Your Order by December 31st

ISAE is again preparing to publish its Legislative Directory of the General Assembly of Illinois. For 40 years and counting, ISAE has prepared this pocket reference guide that ISAE members purchase for use by their own members. This year the directory will include maps of the IL Capitol Offices along with pictures, e-mails and administrative office contacts.

The scheduled delivery date is March 15, 2011. This date is contingent upon ISAE going to print by January 31, 2011. If your organization places an order, but holds their legislative advocacy day prior to the delivery of the directories, ISAE will provide you a copy of the insides that can be duplicated for use by your volunteers.

The directories will again be ordered on-line at www.isae.com and orders may be placed beginning November 15th. There will be an increase in price, the first increase in over four years, and a delivery charge will be assessed. All directories will be shipped UPS directly from the printer, as they are available, in an effort to provide the most immediate delivery date. Customized covers may be ordered directly from the printer. The directory will be printed by ISAE Member, Tailored Printing.

ISAE is expecting to print approximately 55,000 copies. Don’t forget to order yours for 2011 and 2012!

2 ISAE Executive Edition Issue #5 2010

ISAE Executive Edition StaffLinda Brookhart, IOM ...................PresidentDustin Scott ....................Associate DirectorTamiko Kinkade .................................Editor

The ISAE Executive Edition is published six times a year in print and on the World Wide Web. The electronic format is available at www.isae.com. For information about advertising availability or rates or to submit articles for consideration, write to ISAE, 3085 Stevenson Drive, Suite 200 - Springfield, IL 62703, contact Dustin Scott, at (217) 529-6838 or e-mail [email protected].

Calendar of EventsOct 25 Membership Luncheon State House Inn

Nov 11 ISAE Office Closed - Veterans Day

Nov 18 Webinar - Location TBD

Nov 19 Roundtable Discussion IL Primary Health Care Assn

Nov 22 Membership Luncheon & Annual Business Meeting Hilton Garden Inn Springfield

Nov 22 Seminar (following lunch) Hilton Garden Inn Springfield

Nov 25-26 ISAE Office Closed Thanksgiving

Dec 2 ISAExtra/NIU Holiday Party Abraham Lincoln Presidential Library & Museum

Dec 14 Association Forum’s Holiday Showcase Hyatt Regency Chicago

Dec 24 ISAE Office Closed - Christmas

Dec 31 ISAE Office Closed - New Year’s

Jan 18 2011 Annual Convention & Trade Show President Abraham Lincoln Hotel & Prairie Capital Convention Center

Check the ISAE website for up-to-date information at:

www.isae.com.

It is now October and ISAE has managed, like many of your organizations, to survive the economic impact of the past year. Although some of us may have done so better than others, I am pleased to say “we made it.” Cash flow has been the real issue as we have seen a major decrease in our advertising and sponsorship revenues. Of course, this is because ISAE’s partners in the hospitality and tourism industry have themselves taken a big revenue hit.

As you well know, tourism annually generates $2.1 billion in tax revenue to the State of Illinois and local

governments, supports 303,500 jobs, and pumps $30.8 billion into our state’s economy. Additionally, each family in Illinois annually saves $1,100 annually in taxes thanks to revenue generated by visitors. Tourism is clearly part of the solution to Illinois’ economic recovery.

For most of the summer I have stayed in touch with our member Convention and Visitors Bureaus and offered ISAE’s support as they pressured state government to release funds that were allocated for the industry. Finally in August they received the final commitments from the 2010 budget. But FY 2011 is still in flux, though as I write this Governor Quinn is committing 80% of the funds due to the industry by law, to them in 2011. A good start, but still miles to go.

As you plan your meetings for the next few years, please support ISAE member Convention and Visitors Bureaus and hotels. Both need us as we need them. I asked Lisa Landers from the DuPage CVB to remind us why it is important that we involve the CVBs when searching for meeting venues. Please ask the CVBs to include ISAE member hotels in their request for proposals and give them priority when making your decision.

ISAE and the Illinois tourism and hospitality industry have a symbiotic relationship. ISAE members generate funds to support the industry through hotel occupancy taxes. The industry in turn provides advertising and sponsorship revenues back to ISAE. We rise and fall together. It is important to remember this relationship and support those who support us!

Message from the Executive Director

Thank you to our Institute Sponsors:

Pamela J. Tolson, CAE

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4 ISAE Executive Edition Issue #5 2010

What a great ISAE Summer Session we had in the Quad Cities! As a follow-up, Pam asked if I could give you some more information on the benefits of using a Convention & Visitors Bureau (CVB).

Our clients are always telling me how busy they are and how they are expected to do more work in less time. Sound familiar? This is where outside resources, especially free ones, can really help.

The CVB is that free resource. Our job is to be your “right hand” in meeting planning. We are the experts on our destinations—everything from hotels to attractions to transportation. We may even be able to assist with things that are outside our area because we are so well-connected in the industry. Just ask!

Our biggest service to help you quickly and efficiently find the hotel or meeting facility that will best fit your needs. Make one call to us, and we can gather proposals from all the facilities in our area that meet your criteria.

Most CVB sales people have hotel sales experience. For example, the three of us in DuPage have over 75 years experience in the meetings industry, so we really understand the needs of meeting planners. We know what questions to ask, and we know how to convey your specific needs to our area hotels. Most CVB professionals will also take you on site inspections of the properties you are considering, and they will provide you with unbiased assistance in making your decision.

Our free services don’t stop there. Although services may vary among CVBs, many common ones include welcome bags with visitor guides, maps, registration support, attendance boosters, banners or welcome signs, and even having an official from a municipality help kick off your opening session. CVBs can help with all aspects of your meeting, and we can help your attendees find the best restaurants, attractions and shopping spots to fill their free time.

Many of you have expressed concerns that you would be contacted by a bunch of facilities that are not relevant to your search if you use a CVB. Although I can only speak for

Certified CVBs: A Win-Win Propositionby Lisa Landers, CMP

DuPage, I feel confident that if you have a specific area, type of hotel (resort, IAAC-approved, full -service, etc.) or brand loyalty, you should be able to tell any CVB professional to send your RFP/lead sheet to only a particular segment for responses and have your request honored. We can also provide a confidential service whereby all the proposals are sent to us to be organized and forwarded to you for review.

DuPage is proud to be Illinois’ only certified bureau for DuPage County and all of its communities. Certified CVBs in Illinois are held to a high standard, and we rely on state grant dollars which we must match with local dollars in order to operate and offer the free services that we do. At the end of each fiscal year, we must submit reports to the state that show how many planners/organizers we assisted during our grant period in order to help justify our funding and qualify for the next year’s grant. As you know, Illinois’ current financial state is pretty tight, and we are all scrambling for our slice of the funding pie, which is much smaller than in years past.

As ISAE planners, you can help by utilizing your Illinois-certified CVBs when planning your meetings and events. Allow us to send out your RFPs to our facilities so they may bid on your business. The state looks for both “leads sent out” and “leads booked” through our offices. The more planners we can assist in locating and booking their meetings, and the more convention services we provide, the more we demonstrate our value to the state while saving your organization time and money. It’s a real “win-win.”

Thank you for supporting the State of Illinois’ Certified Convention & Visitors Bureaus. We are at your service to help ensure the success of your meetings and conventions.

Lisa Landers, CMP, Director of SalesDuPage Convention & Visitors Bureau

Lisa Landers, CMP

5 ISAE Executive Edition Issue #5 2010

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Interested in exhibiting at the convention? You’re in luck! Space is still available. Download the exhibitor prospectus from the website or call the ISAE office with questions.

We hope that you save this date and plan to join your colleagues for a day of learning, networking, and fun!

Schedule of Events: January 18, 2011

11:30 a.m. – 1:00 p.m. Opening Luncheon featuring Awards Presentations

1:15 – 2:45 p.m. Concurrent Education Sessions - (choose 1) • ToughTalking:TipsforInitiatingandManagingDiscussionswhentheStakesareHigh–MaryByers,CAE • BlingwithouttheCha-Ching:HowtoCutConventionCostswithoutLettingitShow–panelofexperts • ProfessionalWellness:DevelopingandAdvancingYourCareer– Mark Sturgell, CBC

2:45 – 3:00 p.m. Break

3:00 – 4:30 p.m. Concurrent Education Sessions - (choose 1) • HowtoHandleDifficultPeople–MaryByers,CAE • QuiztheWhiz:AnUltimateCEORoundtableEvent–panelofexperts • PersonalWellness:SayingGoodbyetoUnwelcomedStress–WendyWhite,RN

4:30 – 6:30 p.m. Trade Show and Closing Reception**

**Cash bar will open at 4:30. Complimentary hors d’oeuvres will be served beginning at 5:30 p.m.

6 ISAE Executive Edition Issue #5 2010

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7 ISAE Executive Edition Issue #5 2010

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ISAE knows that effective advertising is important to the success of your business. We also know that dissipating budgets in an uneasy economy make this a challenge. Let us help you promote your ser-vices, without overextending your budget, all while showing your support to ISAE!

ISAE Offers advertising in print publications, like the ISAE Newsletter and Annual Convention Program book, as well as giving you the opportunity to put your logo on our website!

Visit www.ISAE.com today and download the Ad Rate Card, or contact the ISAE Office for additional information.

8 ISAE Executive Edition Issue #5 2010

Many of the provisions of Public Act 96-832 (previously SB 1466) will go into effect on January 1, 2011. This bill which passed during the first year of the 96th General Assembly amends the Election Code in Illinois and should be reviewed by political action committee (PAC) managers so that they will know whether or not it will impact the present administration of their PAC.

One significant provision is found in Section 9-2 of the new law:

“(10 ILCS 5/9-2)Sec. 9-2. Political committee designations(d) Beginning January 1, 2011, no natural person, trust, partnership, committee, association, corporation, or other organization or group of persons forming a political action committee shall maintain or establish more than one political action committee. The name of a political action committee must include the name of the entity forming the committee.”

Unless the exact name of the entity forming the PAC is in the title of the PAC name filed with the State Board of Elections, an amended form needs to be filed to be in compliance with the new law. For example the Widgets Political Action Committee probably needs to be re-filed and renamed, the Illinois Association of Widgets Political Action Committee; the Sangamon County Association of Widgets Political Action Committee; or whichever Widget organization created the PAC.

This new provision in state law may have a ripple effect for those political action committees that are required under Section 527 of the Federal Internal Revenue Service Code to file a Form 8871. That law, adopted in 2002, basically

requires any political organization except the following to file Form 8871:

Any organization required to report to the Federal •Election Commission as a political committeeCommittees of state or local candidates•State or local committees of a political party, and•Any organization reasonably anticipating that it will •always have less than $25,000 for any taxable year

When changes occur regarding the PAC (i.e. name change, officers, etc.); then an amended Form 8871 must be filed within 30 days of the change. Thus the new Illinois law may trip the requirement for many Illinois association PACs to file an amendment to their Form 8871 federal filing. This is further complicated by the need to electronically make the changes to Form 8871. The IRS needs some time to issue a user ID and password if an organization doesn’t have one and will not issue these on the spot.

Now is the time for PAC managers to familiarize themselves with the new requirements of the Illinois law and double check their responsibilities under the federal law. Seek advice from your legal and accounting professional. Don’t be afraid to call the State Board of Elections or the Internal Revenue Service if you have questions.

References: State Board of Elections 217-782-4141 Internal Revenue Service 877-829-5500

* The author is not intending to offer legal or accounting advice. This article is an effort to make parties aware of the new laws affecting PAC management. Always seek legal and accounting professionals to provide such services that apply to your organization.

ISAE will host its Annual Business Meeting during the Membership Luncheon on Monday, November 22, 2010. At this time the ISAE Board and Committees will report on the year’s activities and plans for 2011. The 2011 Board election will also be held. The meeting is at the Hilton Garden Inn. Please plan to attend.

ISAE Annual Business Meeting – November 22, 2010

New PAC Law May Impact Associations…. In More Ways than OneBy Randall F. Witter, CAE*

9 ISAE Executive Edition Issue #5 2010

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Nothing diminishes your ability to get things done faster than a bad night's sleep. I will be the first to admit I have had my fair share of sleepless nights triggered by everything

from crying babies to barking dogs, but perhaps another time and place we can discuss those solutions (especially my neighbor’s dog). What I am thinking about is what is keeping you as an association executive up at night?

Recently Association CEOs from Illinois and Wisconsin gathered at our NIU Naperville Conference Center. Why you ask? It just so happens that they too were seeking remedies for their own insomnia. So Northern Illinois University’s Association Resource Center teamed up with industry leaders, ISAE and the Association Forum of Chicagoland to host a CEO Retreat to further explore what is keeping Association CEO’s up at night.

I am pleased to report if you have found yourself tossing and turning at night due to work related issues, you are definitely in good company. It is also worth noting that there are just as many opportunities and new ideas as there are problems impacting organizations. The bad news is Association CEOs are wrestling with lots of issues and often have only enough time and resources to triage solutions.

In preparation for this year’s Retreat, attending CEOs completed a short survey which helped quantify both opportunities and challenges impacting their organization. CEOs reported the top new opportunities facing their organizations are new sources of non dues revenue, implementation of strategic partnerships with other organizations/companies and new innovations for training and meetings. Rounding out their most pressing challenges included: member loyalty/retention, consumer confidence/economic recovery and doing more with less.

Certainly none of the problems or opportunities identified in advance of the Retreat are necessarily new or unique to the association industry. However, the intellectual capital of the participants and the dialogs that occurred through facilitated discussions and candid conversations are invaluable. Even with every resource at our disposal, we can never replicate the synergy of connecting with someone else.

As a member of the university community and colleague of the association industry, it certainly feels like we are preaching to the choir when we talk about the benefits of collaboration and demonstrating that we too are a learning organization, but do we walk the walk and talk the talk?. And while your neighbor’s dog might not keep you up at night, it is nice to know that there is someone else tossing and turning about the engagement of younger members and more importantly that you can contact them to learn more about what they are doing about it.

NIU Association Resource Center Corner

Association Sleep Study: What keeps your Executives up at Night?

By: Christy Snyder

Members of ISAE and Association Forum met in September at the NIU Naperville Facility for the 2010 Association Leadership Summit and CEO Retreat

11 ISAE Executive Edition Issue #5 2010

Got a minute? Want to improve governance and management?

Here are 15 quick fixes to key processes.

D & O Policy – Pull out the Directors and Officers 1. liability insurance policy; make a copy and send it to an attorney for an opinion. Does the policy your cover current activities and structure? An attorney may be willing to review the policy knowing that that he or she may rely on the coverage in a legal case.

Employee Manual – Check your employee manual to 2. see if it includes a “whistle blower clause.” In response to the policy questions on IRS Form 990, your board probably adopted a policy. Has it been transcribed into the employee manual so that staff is aware of its existence?

IRS Form 990 – Filed annually, the form has undergone 3. significant change. Some executives ask a CPA to complete it without much oversight. Pull out the recent filing and read it for insights. Does the 990 reflect reality? Did the CPA receive accurate information about policies and amendments? Did the board review the 990 prior to filing? An understanding of the 990 is good management.

Policy Manual – Policies are the wisdom of the board; 4. reflected in the minutes and maintained in a policy manual. When was it last updated? Is it accurate or cumbersome to read? Is there a need for a review and sunset of old policies and recommendations for new?

Membership Survey – When were members last 5. asked about their needs and satisfaction with the organization? Technology makes surveys cost effective. (Even if they don’t respond, they will remember that you cared enough to ask.)

Brand Awareness – Use a style guide to maintain a 6. consistent message and brand. The short guide demonstrates proper use of your logo, color, formats and terminology to staff, committees, chapters and consultants. It may include policies and protocols as to who speaks for the organization.

Mission Update – The mission, vision and values 7. statements distinguish the organization. They should be contemporary and compelling. Compare the mission in use with the statement of purpose on IRS Form 990. If the mission needs an update, make suggestions to the board.

Value Proposition – “Our association is the best kept 8. secret,” is a common board lament. Most members join for an advantage. Does the value of benefits and services exceed the dues paid? Have a task force review the package of benefits and services to determine if the diverse categories of membership realize a significant return on investment.

Membership Application – Does it clearly and concisely 9. convey an image and key messages? Is the required IRS notice informing members of the non-deductibility of dues as a charitable contribution included (except for 501c3 organizations.)

Professional Development – Check the annual budget 10. for the funding of staff training. If the board ignored or short changed staff education, come up with a 3-year plan of professional development. Allocate at least $500 for each staff member’s basic training and larger amounts for developing staff through certification and conferences. (If your board budgeted more for landscaping than for staff training, there may be a problem.)

Strategic Plan – Some plans simply collect dust. The 11. plan should serve as a roadmap and framework for volunteer leaders. Are directors relying on the plan; do they have copies of the plan, interim reports and performance measures? Add vitality to your plan by reformatting it, aligning goals with committees, and celebrating achievements.

Conflicts of Interest – A question on IRS Form 990 12. asks how the organization regularly and consistently monitors conflicts of interest. Be sure your board commitment form and conflict of interest policy is understood. Format it for easy reading and consider how to integrate it into the nominations, orientation and installation processes.

Dashboards – Similar to a vehicle gauges that measure 13. speed and fuel, you can measure organizational progress with a dashboard. Develop metrics (graphics if possible) on membership recruitment, retention and market share, budget income and expenses, savings

Quick FixesBy: Bob Harris, CAE

Continued on page 6

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Quick Fixes... Continued from page 11

reserve, conference attendance and website visits. Metrics focus the board on performance and outcomes, rather than historical reports.

Antitrust – Consider the Federal Trade Commission 14. 2009 recommendation that all trade associations have antitrust avoidance measures in place. Review how you communicate antitrust avoidance to directors, committees and chapters. Is your statement in good form and do you have proof of delivery to the board in your minutes?

Board Orientation – The changing economy, media 15. scrutiny and member expectations are cause for an annual orientation of the volunteer leaders. Review your orientation process and resources. Be sure you are communicating responsibilities in a clear, concise manner.

Bob Harris, CAE, provides free tips and templates at www.nonprofitcenter.com. Contact him at [email protected].

ISAE is collecting nominations for the 2010 Awards of Excellence! Peer Recognition is the ultimate compliment each of us can receive. Who knows better the effort that has been expended to ensure a job well done? ISAE's Annual Awards for Excellence recognizes the outstanding accomplishments of its regular and associate members. Nominate your peers for one of ISAE’s prestigious awards today!

Distinguished Member•Associate of the Year•Association Excellence•Rising Star•

Nominating is easy and only takes a few minutes! Visit www.isae.com to cast your submission.

Nominations must be received by December 10, 2010. Winners will be announced and recognized at the Opening Awards Luncheon in conjunction with the 2011 Annual Convention & Trade Show on Tuesday, January 18, 2011 at the President Abraham Lincoln Hotel.

13 ISAE Executive Edition Issue #5 2010

ASAE Inroads

SNOWE CRITICIZES SBA FOR SILENCE ON 1099 RULESen. Olympia Snowe (R-ME) Oct. 5 publicly criticized the Small Business Administration (SBA) for failing to comment on how new Form 1099 reporting requirements will impact small businesses and tax-exempt organizations.

Enacted as part of the Patient Protection and Affordable Care Act passed by Congress in March, the Form 1099 requirements force all businesses and tax-exempt organizations to issue a Form 1099 to vendors from whom they buy goods totaling $600 or more annually. The change, scheduled to take effect in 2012, could result in associations having to issue hundreds or even thousands of forms each year, track cumulative payments to vendors, and obtain tax identification information from each vendor. The National Taxpayer Advocate has estimated that 40 million businesses, charities and associations would be impacted by this new requirement.

The Senate rejected two amendments to the Small Business Jobs Act Sept. 14 that would have alleviated the onerous requirements for small businesses and associations, although the issue continues to hold sway with lawmakers on both sides of the aisle.

In a letter to Dr. Winslow Sargeant, chief counsel for advocacy at the SBA, Snowe called for the agency to provide a specific plan for how it plans to address the 1099 issue to mitigate unwarranted impacts on small businesses.

Across the Capitol, Rep. Sam Graves (R-MO), ranking member of the House Small Business Committee, sent a follow-up letter Oct. 5 to IRS Commissioner Douglas Shulman asking for details on how the IRS plans to implement the new reporting requirements. Graves said he had asked Shulman in June for a response on the 1099 issue and there has been no effort to respond.

“During the month of August, I traveled to every corner of my Congressional district, visiting small businesses and holding town hall meetings,” Graves said in the letter. “A significant issue on my constituents’ minds was the burden and expense of compliance with this new 1099 requirement… I am disappointed that after over three months, I have not received a substantive or even an interim response from you on this critical issue.”

Continued on page 14

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14 ISAE Executive Edition Issue #5 2010

Bloomington-Normal

ISAE Newsletter Ad.indd 1 8/5/10 2:43 PM

SMALL BUSINESS BILL INCLUDES CELL PHONE FIX Included in the Small Business Jobs Act signed by President Obama Sept. 27 is tax relief and simplification for cell phone deductions supported by ASAE and others in the association community.

The provision updates the tax treatment of employer-provided cell phones and other mobile devices and eliminates the paperwork required for businesses to claim a deduction. The previous law, written at a time when cell phones were viewed as a luxury perk for corporate executives, added cell phones to the “listed property” rule in the tax code and required employers to maintain detailed logs of employees’ personal calls, text messages and emails.

Also of interest, the new law increases penalties for failure to file Form 1099 reports with the IRS and adds individuals receiving rental income from real estate to those small business owners covered by Form 1099 reporting requirements if they make payments of $600 or more to a service provider.

The Small Business Jobs Act is touted as an important step to stimulate investment in small businesses, promote entrepreneurship and create jobs. The bill creates a small

business lending fund to help businesses access the capital they need to grow and hire new workers; it also includes $12 billion in small business tax cuts and funds export-promoting programs that help American companies compete abroad.

SENATE REJECTS ENZI RESOLUTION ON GRANDFATHER RULEThe Senate recently rejected a resolution disapproving of the so-called grandfather rule in the new health care law.

The new rules allow plans that existed on or before March 23, 2010 – the day the health care reform act was signed into law – to make “routine and modest adjustments” to co-payments, deductibles and employer contributions without forfeiting grandfather status. Plans will lose their grandfather status, however, if they choose to significantly cut benefits or increase out-of-pocket spending for consumers.

ASAE is one of numerous organizations to deliver comments to the administration on the grandfather regulations. ASAE is concerned that the formula for determining significant cuts in benefits or increases in spending could force associations experiencing unexpected or routine premium increases to lose their grandfathered status and face a series of new

ASAE Inroads... Continued from page 13

15 ISAE Executive Edition Issue #5 2010

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requirements for their plans. ASAE has asked that the administration consider an exemption for small to medium employers until 2014 as long as they do not reduce the per-employee amount they pay for insurance, as well as permit these employers to change insurance carriers as long as they keep the per-employee amount the same.

ASAE SUBMITS COMMENTS ON STATE HEALTH CARE EXCHANGESIn September ASAE submitted comments in response to a series of questions posed to the public by the Department of Health and Human Services (HHS) on the creation of the state-based health Exchanges.

The Patient Protection and Affordable Care Act requires every state to create a state or regional health care Exchange to help individuals and small employers find affordable health care plans, similar to how federal government employees currently are able to pick their health care plan. If the state does not create its Exchange by 2014, HHS is required to create one for it. The request for comments is to solicit public feedback on some technical issues on the creation and implementation of the Exchanges.

To learn about issues and to take action, visit ASAE's Advocacy site at http://capwiz.com/asae/home

©2009 American Society of Association ExecutivesPublic Policy Department, 1575 I St. N.W.

Washington, DC 20005-1103Phone: (202) 626-2703; Fax: (202) 371-1673

e-mail: [email protected] Website: www.asaenet.org

ASAE, working with volunteer members with experience in a number of fields, submitted answers to 12 of the questions from HHS. The comments emphasized that associations have the infrastructure and experience to push out information to a wide number of people, as well as extending benefits to a larger population. ASAE also emphasized that using the diverse association community in every state would not only save implementation costs and time, but allow for better dissemination of information about the benefits of the Exchange.

ASAE Inroads... Continued from page 14

P.O. Box 11058Springfield, 62791-1058