RESPONSIBILITIES AND ROLE OF THE EO revised



TABLE OF CONTENTS

RESPONSIBILITIES AND ROLE OF THE EO 2

Flow of Authority within the Association 2

Roles in the Association 5

Working With the Leadership 7

ASSOCIATION MANAGEMENT 10

Tax Status 10

Non-Profit Status and Operating Reserves 11

Internal Financial Control Procedures 12

Record Keeping 15

Calendar for Most Common Internal Revenue Service Reporting Requirements 16

NAHB’s Membership Accounting Process 18

Non-Dues Sources of Revenue 19

Recruiting Members 22

Membership Retention 24

Association Publications 27

Meeting Management 31

NAHB OVERVIEW 34

Introduction to the National Association of Home Builders 34

NAHB Member Services 34

The Executive Officers Council 38

EOC Organizational Structure 38

EOC Staff 39

Executive Officers Council Services 41

EOC Member Recognition 43

EOC Member Communications 44

NAHB MEETING PROCEDURES 46

International Builders Show/Convention 46

Fall and Spring Board Registration Procedures 47

MEMBERSHIP REPORTING 48

NAHB Director Nominations 48

The Resolutions Process 50

Membership 51

Overview of Activities Involved in the Monthly Membership Cycle 51

Types of Membership 52

Membership Reporting Obligations of Local/State Associations 53

An Introduction of the Membership Accounting Process 53

Overview of the Local Monthly Reports 54

Spike Credits 56

RESPONSIBILITIES AND ROLE OF THE EO

Flow of Authority within the Association

Understanding and working with the flow of authority within your Association will be a great determinant of your success as an executive officer. Knowing who makes decisions in specific instances, and who is ultimately responsible for seeing that those decisions are carried out will help you determine what the lines of authority are, who needs to be appraised and when, and to whom you are directly responsible.

Within Associations, there is an established and recognized flow of authority. Specific Associations may vary this flow of authority somewhat to fit their specific circumstances, but the accepted flow provides an excellent basis for you and your leadership.

← Members

Authority begins with the membership. Members are the basis of the Association's existence. They are the powerbase of the Association. All authority and power originates with them.

← Bylaws

Your bylaws are the governing document of the Association. They are the agreement between the Association and its members, and they provide the management rules under which the Association is administered.

While what is included in an Association's bylaws may differ somewhat from one Association to another, the following will probably be included in a typical document:

▪ Name and Location of the Association

▪ Affiliation Information

▪ Purposes of the Association

▪ Membership Information

- Classes

- Criteria for acceptance and suspension of members

- Meeting requirements

- Dues and fees (how established and collected)

▪ Board of Directors

- Composition

- Authority

- Filling vacancies

- Meetings

- Voting

- Quorum requirements

▪ Officers

- Composition

- Authority

- Duties

- Filling vacancies

- Voting

- Quorum

▪ Administrative Offices

- Authority

- Duties

▪ Elections

- Nominations

- Location and method of elections

▪ Committees

- How appointed

- Quorum requirements

- Bylaws may specify committees

▪ Councils

- How appointed

- How managed

- Lines of authority

▪ Finance

- Fiscal year

- Budget - who determines and approves

- Funds - who has authority for disbursement reserves

- Funds - dispersal in the event of dissolution of the Association

▪ Rules of Procedure

▪ Amendments

← Board of Directors

The Board of Directors is entrusted by the membership to ensure the bylaws are followed and that any new decisions are made are in the members' best interest.

← Policy

The Board establishes the policies under which the Association will function. Elected officers and chairmen are located at the same level within the flow of authority.

← Elected Officers

Elected officers and/or the Executive Committee take the lead in overseeing the implementation of Board policy and ensuring that policies are integrated into the overall direction, goals, and leadership of the Association. The officers use the Association’s bylaws and policies as a guideline in order to make decisions about the administration of the Association.

← Chairmen

Chairmen are the implementers. They work within the parameters established by the bylaws, policies, and the board to achieve the goals of the Association.

← Procedural Policy

Procedural policy establishes the way that administrative decisions are made. It is the guide for staff to make decisions in such areas as office management, investments, staff supervision, and evaluation.

← Executive Officer

The executive officer is the chief administrative officer of the Association. The executive officer (and any staff) maintains the daily operation of the Association.

Roles in the Association

Associations generally fall into three types of leadership styles - those that are member-driven, those that are staff-driven, and those that are a mixture of the two.

In a member-driven Association, the membership not only sets the goals; they are actively involved in program development and implementation. Such Associations tend to have a great deal of enthusiasm and volunteer involvement, but goals may not be reached or programs implemented in a timely manner, and the day-to-day operations may be somewhat chaotic. Additionally, staff may have a hard time being clear on their own role and authority.

Staff-driven Associations are generally well organized, but member involvement may be limited. They may not feel a part of the organization and the support is not there when it is needed.

Associations that operate utilizing a mixture of member and staff driven functions generally combine the positive aspects of the other type while avoiding many of their negatives. Members, leadership, and staff work together in a partnership in balanced Associations. The members and leaders provide the ideas, and staff translates those ideas into programs and projects. All involved generally respect one another, and the Association receives great benefit from shared expertise, and a good deal of enthusiastic involvement.

In order to understand the role of the executive officer (and staff) in this partnership, it is important to understand the roles of all the other participants.

← Members

As noted in the first part of this section, members are the ultimate authority in the Association. In the leadership partnership, members are the delegators. They have delegated the Association's operation to the leadership.

← President

The president is ultimately responsible for the actions of the Board and the Association. The president is the individual with whom the executive officer will have the greatest contact during a given year. A strong working relationship with the president - the chief elected officer - with the executive officer - the chief staff officer - is a very important component in making the leadership partnership work.

Each year, in the fall NAHB runs leadership training conferences for the elected leaders of local Associations. During that conference, a session is held on team building between the Association’s incoming president and executive officer. That program helps define roles, responsibilities and expectations for each other during the president’s term of office. It is an excellent resource for ensuring a smooth and successful year.

← Officers

The officers participate as equal partners in planning and implementing Association activities and events. In most Associations, the officers are in training for the role of Association president. It is important to use their years on the leadership ladder to build a strong working relationship with the executive officer and Association staff.

In many Associations between board meetings, officers function as an Executive Committee. In this capacity, the officers deal with some of the operational decisions of the Association.

← Board

The Board has several important duties in the Association.  They approve and evaluate policy, exercise financial oversight for the Association, and hire and evaluate the Executive Officer.

← Committee Chairs

Committee chairs are responsible for planning and implementing Association policies that fall into their specific areas. In most Associations, committee chairs are appointed by the president and report on their committee's activities to the Board.

← Executive Officer (and staff)

The executive officer and staff provide the consistency in the Association. In most Associations, presidents change annually, a new Board is elected each year, and committee chairmen are appointed by each president. It is the staff, along with the Association's bylaws, policies and strategic plan that provides the continuity.

In general, it is the leadership that determines the direction the Association will take; it is the staff that ensures the leadership's plans and policies are implemented. Staff provides the logistical support needed to put plans into action.

The size of the Association, the number of additional staff, and the involvement of the volunteer leadership will determine the extent of the executive officer's responsibility. While there may also be additional duties, the position responsibilities of the executive officer will include the following:

▪ Inform the leadership about the conditions and operations of the Association;

▪ Execute all decisions of the Board;

▪ Develop policies, procedures, and programs to implement the direction established by the Board;

▪ Establish an organizational structure for the staff;

▪ Recruit, hire, orient, and evaluate staff;

▪ Direct and coordinate all staff activities;

▪ Provide staff support and liaison to committees; and,

▪ In cooperation with the treasurer and budget committee, develop, recommend, and operate within an annual budget.

It is critical that, along with the responsibility, the executive officer is given the necessary authority to carry out those duties.

← Specific Areas of Responsibility

In addition to the above responsibilities, executive officers will usually have oversight or direct responsibility for written and other communications, marketing, planning and evaluation, education programs, meetings, public relations, membership recruitment and retention, legal issues, and government affairs. In large Associations, chapter and council oversight may also be a part of the executive officers’ job.

These multiple responsibilities make it essential that the executive officer work with volunteers in many varied capacities. In the small office, this is crucial, as the executive officer's position would be impossible without the cooperation and efforts of volunteers.

While it is the executive officer’s role to be the Association’s leader, it is critical to understand what that means. First, it is important to realize that leading the Association is not the same as leading the industry. The executive officer may be the Association management expert, but in most cases, the members are the industry experts. Executive officers need their members’ technical knowledge to succeed. Second, leadership does not mean being directive. It means having skills in the areas of negotiation, compromise and persuasion. The executive officer’s job is to serve as a “stage manager” and to keep volunteer leadership focused by helping them do their jobs successfully.

Working With the Leadership

Depending on the Association, every year or two, the executive officer must learn to work with an entirely new leadership. It is of great importance that your Association has policies and procedures in place to help you orient these new leaders to the process of operating the Association.

In addition, your Association should have a strategic plan, setting multi-year objectives, which everyone has agreed upon. This assures continuity in the priorities of the Association, making it less susceptible to the whims and individual agendas of a changing leadership.

Leadership orientation starts long before individuals begin their positions. Developing and orienting leadership is a process that begins before a member has even thought of assuming a role of responsibility within the Association.

← Member Orientation

Associations hold new member orientations in many types of settings - breakfast meetings, lunches, or before a general membership meeting. Whenever you choose to hold this meeting, provide an incentive for attendance - a meal, some free gifts (HBA logo pens, T-shirts, refrigerator magnets, etc.), and use a combination of staff, the leadership, and involved members to keep the program interesting.

Involve the new member sponsor by asking the sponsor to bring the new member to the orientation and to introduce the member to others.

At the new member orientation, include the following:

▪ Introduction of new members

▪ Brief history of Association - a short video is helpful

▪ Member services overview

▪ Information on councils and committees

▪ Special events information

▪ Volunteer sign-up

Send each new member home with a packet of information. Include the HBA brochure, information on all member services, latest publications, and information on upcoming events. Mail the packet with a personalized letter to all new members who did not attend the orientation.

← Member Involvement

An involved member is an asset to your Association. The involved member will help accomplish the work of your Association, an involved member will retain his or her membership, and an involved member will get others involved.

You've started the involvement process at your new member orientation. Any new member who has indicated an interest in involvement should be contacted immediately by a committee chairman or member. The new member should be invited to the next meeting and given a meaningful job.

▪ Selecting Committee Members

While committee members are usually selected by the chairman or your Association's president, you will probably be asked for suggestions. Committee members should be chosen for their diversity. They should be representative of all types of members and have expertise in the committee's subject, commitment and follow-through, and ability to get along with other committee members.

▪ Committee Chairmen

Along with the above criteria, committee chairmen should be well organized, able to gain consensus, and have the required knowledge of parliamentary procedure to run a meeting.

▪ Leadership Orientation

In order to help your chairmen, board members, and officers accomplish their roles efficiently, your Association should provide a leadership orientation. In most Associations, this orientation includes a 1-2 hour program and an orientation notebook with the following:

- Association bylaws and policies

- Strategic and annual work plans

- Minutes of the last year's board meetings

- Association calendar

- Budget for the coming year

- Statement of reserves

- Information on directors

- Staff names and responsibilities

- Committee descriptions and chairmen

- Council information

- Information on special events

Council or committee chairmen should receive minutes of last year's committee meetings, budgets for special projects or committee budgets, and any other information pertinent to their councils or committees.

The orientation should also include information on specific leadership responsibilities. This includes information on preparing meeting agendas, running meetings, and assigning work. You may also wish to include information on local industry issues as well as a forecast on the Association's plans for the year.

It is necessary for the executive officer to keep informed and up-to-date with information through NAHB, Association management in general, and the local community. This information will keep your Association’s decision-makers informed regarding important trends and issues, both within and outside of the Association. With this knowledge, you can help keep your Association prepared and avoid potential crisis.

← Special Opportunities for Leadership

NAHB offers Leadership Training Conferences during the fall of each year. The conferences are specifically designed to benefit Association leaders. Contact the Affiliate Services Department.

The annual EOC Seminar is another excellent opportunity to gain knowledge on industry issues, association management, technology, as well as a myriad of other topics.

ASSOCIATION MANAGEMENT

Tax Status

Questions of taxation and tax status are complicated, and the answers are dependent on specific circumstances. It is important that your Association consults a CPA or tax attorney who is knowledgeable about Association law when questions arise.

Associations that file for tax-exempt status are granted that status by the Internal Revenue Service (IRS). This recognition of tax exemption is based, in part, on the Association's stated purposes. The two most common status classifications in the Association community are:

← 501(c)(6)

A 501(c)(6) Association is a business league. In a business league, members share a common business interest and join together to promote that interest. Most NAHB-affiliated Associations are tax-exempt under Section 501(c)(6). Some smaller Associations have never filed for tax-exempt status because their financial status does not require them to file a return with the IRS. IRS returns are regularly changing; consult a CPA for your tax status.

501(c)(6) Associations may choose to set up a 401K retirement plan for both their employees and/or members. Please check with your attorney or benefits consultant for further details.

← 501(c)(3)

A 501(c)(3) Association is organized primarily for a charitable, educational, religious, or scientific purposes.

Aside from their stated purposes, there are several differences in the organization and operation of these two types of Associations. These differences include, among others:

← Lobbying activities

501(c)(6) Associations are not restricted in their lobbying activities, while 501(c)(3) Associations may not engage in "substantial" lobbying efforts. The IRS provides for a numeric formula to quantify permitted lobbying activity.

← Membership deductibility

Contributions to 501(c)(3) organizations are deductible as charitable contributions by the individual corporate donor. (Although such deductibility is limited by the value of any goods or services received in exchange for contributions.) Payments to 501(c)(6) organizations may only be deductible as a business expense (and such business expense deductibility may be limited, in part, by the extent of the Association’s lobbying activities.)

Each year in the fall, NAHB distributes a memo to EOs about national dues deductibility. For a copy of that memo, contact the EOC.

← Pension plans

Preferential salary deferred 403 (b) pension plans are not available to 501(c)(6) Associations. Employees of 501(c)(3) Associations are allowed to participate in these plans. However, 401K plans are available to 501(c)(6) Associations.

← Postal status

Certain non-profit mailing privileges are available only to 501(c)(3) Associations, providing for a reduction in postage costs.

Non-Profit Status and Operating Reserves

Classification as a 501(c)(6) organization does not mean that your Association may not realize a net profit. In addition, most Associations realize the need to put aside funds as operating reserves, which is permitted by the IRS. Reserves may be used as a building fund, other capital expense fund, as funds to be used in case of an economic downturn or for other legitimate purposes.

← Unrelated Business Income

Although your Association has received tax-exempt status, there may be activities that the Association desires to carry out to generate extra income that are unrelated to the Association’s tax-exempt purposes. The IRS allows Associations to carry out such activities, and to a certain extent, the Association must pay Unrelated Business Income Tax (UBIT) on the net income from such activities.

According to the IRS, an unrelated business activity is one which is:

▪ a trade or business;

▪ regularly carried on; and which is,

▪ not substantially related to the Association's tax-exempt purposes.

For instance, virtually all advertising income is considered unrelated business income.

← Subsidiary Corporations

Some larger NAHB-affiliated Associations have formed subsidiary corporations to carry on separate business activities. These corporations are permitted under the tax code so as long as they are carrying on a separate business activity and are not acting an agent of the parent corporation (they must be operated on an independent basis). Subsidiary corporations can help protect the Association's tax-exempt status, (by housing unrelated business activities that could jeopardize the Association’s tax-exempt status if carried out by the Association), insulate the Association from debt liability, and other liabilities, and facilitate joint ownership of property and other joint ventures, among other benefits.

Internal Financial Control Procedures

← Financial Policies and Procedures

Policies and procedures of the Association should be documented in writing. In this way, the policies and procedures can be accurately communicated to any employee and misunderstandings will be avoided. Where applicable, members who would act in the place of an employee should be familiar with these policies and procedures as well.

← Purchasing

Policy\Procedures for purchasing goods or services should include the following:

▪ Maintain a list of approved vendors. Typically, such a list will contain only twenty or so names. Require one or more officers to approve the addition of new vendors to the list and that no purchases are made from vendors that are not on the list. The Board of Directors should approve the list at least annually.

▪ Should you choose to establish a credit card in the name of the association, seek approval by the Board of Directors and develop specific usage guidelines.

▪ Clearly define the responsibilities for purchasing and required approval procedures, especially for credit cards issued in the name of the association.

▪ To the extent possible, establish accounts (credit) with area vendors so that it is easier to schedule an officer to be involved in paying the bills.

▪ All payments to vendors should be supported by an original vendor's invoice. This includes reimbursement of Association expenses paid with personal credit cards. Do not pay from copies of invoices or from vendor statements.

← Travel and Expense Reimbursement Policy

A written policy for reimbursement of travel and business expenses should exist for employees. Use a standard form and establish criteria for meal allowances, appropriate hotel accommodations and mileage reimbursement. As this number is regularly being updated, visit: for the current reimbursement amount. Receipts should be required and the reimbursement policy for business meals or entertainment should include the following:

▪ an officer or appropriate employee of the Association must be present during the meal or entertainment;

▪ the business purpose and names of those attending must be included with the receipt; and,

▪ when selecting the venue cost considerations and the circumstances surrounding the meal or entertainment should be considered.

← Handling Cash

To the extent possible, there should be adequate separation of duties in handling the Association's cash. If possible, the following guidelines should be adhered to:

▪ All incoming mail should go to the receptionist for processing. All checks received should be immediately stamped with a restrictive endorsement. Deposit tickets should be completed and deposits should be made on the day that the checks are received.

▪ When ordering new checks, have the following statements printed on them:

- "Two Signatures Required"

- "Void After 90 Days"

- Require that two individuals sign all checks.

- Forbid the practice of getting checks pre-signed.

- All check payments should be mailed by someone other than the person who prepares them.

▪ In order to ensure that your volunteer leadership is appraised of the Association's financial transactions, the treasurer should periodically be given unopened bank statements to review. In the event that it is not convenient for an officer to be integrally involved in the cash management process, ask your leadership to consider electing an assistant treasurer who is more conveniently located and who would be willing to sign checks and review bank statements and bank reconciliations. An example of a likely candidate might be an associate member who is an employee of an area bank.

▪ Reconciliation of cash accounts should be done by someone other than the person who is preparing the checks. Reconciliations should be reviewed and approved by an officer of the Association.

▪ At least two people, to include an officer or director, should collect cash payments during special functions such as golf tournaments or dinners. One person can collect the cash and one person can make out a receipt. Payment by checks should be encouraged, and any check received should be immediately restrictively endorsed. After the last cash is collected, the cash and cash receipts should be reconciled and the bank deposit should be prepared. The deposit should be made as soon as possible thereafter.

← Personnel and Payroll

The following steps should be included as part of personnel and payroll procedures:

▪ Maintain a separate personnel file for each employee as well as one for yourself. These are Association records that must remain in the possession of the Association.

▪ Determine the level of authority required to approve pay rates. Use a standard form to approve all authorized pay rates and changes. Retain all approved pay rate forms in the employees’ personnel file.

▪ Obtain signed authorization forms for all withholdings from employee's pay for taxes, insurance or other items. Retain those signed authorizations in each employee's personnel file.

▪ Use a standard employment application form. Verify employment and personal reference information prior to hiring an employee.

▪ Establish a policy of not making personal loans to employees.

▪ Require that employees take earned vacations. Employees who do not use their vacation time may do so in order to conceal some irregularity.

← Other Assets or Liabilities

Listings of other important assets or liabilities should be maintained and updated routinely. Typical items in this category are uncollected dues, uncollected billings for special functions (dinners, golf, etc.) and furniture and equipment. The detail listing of those items should be available for comparison to the amounts that are reported on the monthly financial statements.

← Budget Process

In addition to being a good planning tool, the budget is an excellent internal control. Budget should be broken into monthly components.

← Reports

The executive officer and the Association officers and directors should take part in putting together the annual budget and in subsequent reviews of the ongoing financial operations of the Association.

Financial statements should be prepared and distributed to the officers every month and at least quarterly to the directors. The statements should include the account balance of all assets and liabilities and a monthly and year-to-date income statement. The income statement should be compared to the monthly and year-to-date budgeted amounts. An explanation should be obtained as to the differences between amounts originally budgeted and actual revenues or expenses.

← Audits

For your own protection, you should insist that the Association authorize an annual review of the Association books and records by an independent firm of certified public accountants. Ensure that the accountants are familiar with the established policies and procedures so that they can observe compliance with them as part of their annual review.

← Deadlines

Prepare a calendar of important due dates for filing of income or other tax returns and other important documents. Take steps to ensure that all filings are done in a timely manner.

← Investments

The Association should have a written policy for investing accumulated cash. The policy should include:

▪ Securities that are acceptable;

▪ Financial institutions which to deal with; and,

▪ Investment term guidelines.

← Insurance

Maintain adequate insurance coverage for general liability, professional liability, and for bonding of employees.

← Security

Restrict access to the Association's business office. Use adequate locks on entrance doors and keep sensitive files and information in locked cabinets. Use fireproof storage cabinets for permanent Association records.

Record Keeping

Keeping records is one of the more time-consuming requirements of an EO's job. If you work out of a small office, you may find the paper particularly overwhelming. But, before you discard your predecessor's records, you need to know what's important, what government agencies require you to keep and for how long.

The suggestions below will help you determine how to proceed. Keep in mind that these are only suggestions. You should always follow the advice of your legal counsel and accountant.

|Kind of Record |Name of Record |Maintain for Duration of |

|NAHB Records |New Member Reports |Three Years |

| |Monthly Membership Rosters |Permanent |

| |Renewal Reports |One Year |

| |Spike Club Reports |Permanent |

|Budget Records |Annual |Permanent |

| |Annual Audit |Permanent |

| |Monthly Report |Three Years |

|Association Documents |Bylaws |All of the following: |

| |Articles of Incorporation |Permanent |

| |All records that document tax exempt status | |

| |Minutes of Board and Executive Committee Meetings | |

| |Master ledgers | |

| |Auditor's reports | |

| |Insurance policies - even if expired | |

| |Policy and practice manuals | |

| |Pension records | |

| |Correspondence relating to legal matters | |

|General Documents |General correspondence |Three Years |

| |

|Tax Requirements --The statute of limitations for tax litigation requires that the following records be kept for seven years: |

|Financial records used to prepare IRS documents |

|Books of accounts, check records, other daily financial records |

|Fixed-term documents - licenses, contracts, leases |

|Records of property ownership (for seven years after disposal) |

|Payroll records |

|Personnel files (seven years after termination) |

|Minutes and resolutions by committees (except Board and executive committee) |

Calendar for Most Common Internal Revenue Service Reporting Requirements

▪ By January 31

Employees should have received a completed W-2. Federal Unemployment Tax (FUTA) File 940 or 940 EZ - Employer's Annual Federal Unemployment Tax Return. If you deposited all the tax when due, you have ten (10) additional days to file return.

▪ By February 15

Request a new Form W-4, Employees Withholding Allowance Certificate, from each employee who claimed total exemption from withholding during the prior year.

▪ By February 16

Begin withholding for each employee who previously claimed exemption from withholding but who has not given you a new W-4.

▪ By the last day of February

Income tax withholding: File Form W-3, Transmittal of Income and Tax Statements, with the Social Security Administration (SSA) and file Copy A of all W-2 Forms for employees for the previous year. 1099 Information, along with 1096, filed with IRS.

▪ By April 30, July 31, October 31, & January 31*

- Deposit federal unemployment tax due if more than $100.00. File Form 941, Employer's Quarterly Federal Tax Return, or Form 941E, Quarterly Return of Withheld Federal Income Tax.

- Pay any undeposited income and social security taxes. If you deposited all taxes when due, you have ten (10) additional days to file the return.

▪ By 15th day of fifth month after close of Association's tax year

- Return Organization Exempt from Income Tax Form. The gross receipts and total assets amounts for Form 990-EZ filers have been increased for 2008 and later years. Beginning with the 2008 tax year, an organization may file a Form 990-EZ (rather than a Form 990) if it satisfies both the gross receipts and total assets tests set forth in this table. These filing amount rules are described more fully in the 2008 Form 990-EZ and Form 990 instructions.

|May file 990-EZ for: |If gross receipts are: |If total assets are: |

|2008 tax year (filed in 2009) |< $1 million |< $2.5 million |

|2009 tax year (filed in 2010) |< $500,000 |< $1.25 million |

|2010 and later tax years |< $200,000 |< $500,000 |

All other association must file a 990 Form.

- Associations with unrelated business income tax must pay estimated tax payments on the 15th day of the 4th, 6th, and 9th months of the tax year and the first month of the following year.

- For-profit corporations must file Form 1120 or 1120K by the 15th day of the third month after close of the tax year.

* Note: Associations should contact appropriate departments in their respective states for state reporting requirements.

NAHB’s Membership Accounting Process

For complete information please reference the NAHB Membership Accounting Manual. The following is the introduction to that manual which can be obtained from NAHB’s Membership Records Department.

The NAHB membership accounting process is a joint effort between you and the NAHB staff. Elected officers and staff need to understand each step of this accounting process (even if you do not personally maintain any records). An Association’s executive officer/elected secretary and treasurer are equally responsible for the accuracy of the membership records. In addition, you should be familiar with the membership reporting requirements under Article III of the NAHB Bylaws.

This manual describes each procedure to be performed by the person maintaining your Association’s records. That person may be an executive officer, designated staff person, or volunteer member.

Records must be as accurate and current as possible. Good record keeping will provide you with excellent management tools for membership development and retention.

The membership accounting cycle is comprised of two basic activities:

1) Affiliated Associations are required to collect and remit dues for all their members to NAHB and to the State Association, as applicable.

2) NAHB provides all affiliated Associations with membership reports and the forms needed to facilitate the processing of members.

NAHB has developed a Web Management System (WMS) for membership reporting. More details can be found on page 46 of this manual.

Non-Dues Sources of Revenue

Since so much of the Association budget is dependent on non-dues sources, Associations turn to multiple sources to raise income. State Association non-dues programs include conventions, insurance programs (property/casualty, health/life, and worker's compensation), home warranty sponsorships, publications, and educational programs.

Most local Association non-dues revenue projects are directed toward consumer shows, home parades or other large HBA events. While the scope and size of these projects are often dependent on the staff size of the Association, most Associations depend on the following projects for their non-dues revenue:

▪ Parades of Homes

Associations turn to both single and scattered-site parades as sources of non-dues revenue. Each can be a good source of income, but require great deal of work. From choosing the site(s) and builders, developing promotional materials, selling tickets, arranging security, providing on-site personnel, to coordinating the parade magazine, parades are labor intensive projects.

The most successful parades combine an active volunteer committee with dedicated staff (and cooperative weather!). A “How to” Parade of Homes CD is available from the EOC Office.

▪ Home Shows

Home and Garden Shows, Mall Shows, and Trade Shows are another important source of non-dues revenue. Their popularity is second only to single-site parades. They are at least as labor intensive as parades. Some Associations use an outside contractor to produce the show, while others run their show internally, with member-provided help.

A “How to” Home Shows CD is available from the EOC Office.

▪ Showcase Homes

Showcase Homes are often built as a part of a parade or home show, and serve as a promotional device for these events. The homes usually center on a theme. They may feature green building, or the latest in home technology. Some serve as education homes, providing the public with information on home construction.

Showcase homes provide an Association's associate members with an opportunity to demonstrate their latest products and services. Entrance to showcase homes is usually included in any admission charged for the parade or show. In some cases, the Association may share part of the profits when the home is sold.

▪ Special Events

Special events generally serve dual purposes. They are member services that may incorporate awards and other recognition, networking opportunities, and the opportunity for the Association to develop "team spirit" while raising revenue.

Special events include picnics, golf and other sports tournaments, awards banquets, installation dinners, and casino nights. Revenues are raised by ticket sales, sponsorships, and advertising in commemorative publications.

▪ Publications

Association publications include magazines, newspapers, newsletters, and membership directories as well as special publications for consumer and trade shows and special events. Publications raise money through advertising sales - either on a per issue or yearly basis. Some Associations also have a book of frequently used forms for sale to serve as a convenience to members.

▪ Web sites

Most Associations have a Web site, but not all take advantage of the revenue opportunities which Web sites offer. Not only can the Association sell banner ads on the home page and other secondary pages, but a Web site can be set up to provide for home listings (for a fee), ads and other revenue generating items. Tag sales (described below) can also be done through a Web site.

▪ Royalty and Discount Programs

All kinds of options exist to generate non-dues revenue from royalty and discount programs. They include insurance, cellular telephones, and gasoline, to mention a few. NAHB offers a number of member discount programs and shares the revenue. Visit matoolkit for more information.

▪ Education Programs

Education programs provide a benefit to members as well as serving as a source of non-dues revenue. Education programs may be tied to designation programs, provide training in builder methods, offer education to a specialized group of members, or answer a current need such as instruction on new laws, changes in codes, or briefings on industry issues. Education helps your members cope with the current building climate.

Education programs raise revenue through registration fees, sales of books, program tapes and related materials, and through sponsorships.

▪ Tag/Surplus Sales

Tag sales are a way for small Associations to raise money with fairly low overhead. These sales feature donated construction materials and related supplies sold to the trade and consumers.

▪ Auctions

Auctions are another way to raise money without a great deal of expense while providing entertainment at a dinner meeting or other special event. Donated materials and services may include items as varied as landscaping or decorator services, fixtures and supplies, and the use of vacation property.

The EOC Awards section of the NAHB Web site contains entries on all types of non-dues revenue projects. For more insight into non-dues revenues idea plans, survey your colleagues on the list serve.

Additional Information

Periodically NAHB conducts surveys of both its state and local affiliates. The survey results indicate the percentage and methods of generating non-dues revenue. Contact the EOC Office to request Local Association Finance & Operations Survey. There is also one available for state associations.

Recruiting Members

Membership is the basis of the Association. Recruiting new members is a continual process. All of your members and your staff are recruiters for your Association.

← The NAHB Membership Program

Each fall, NAHB's Membership Marketing Department develops a membership recruitment plan for NAHB’s membership year (November 1 - October 31). The plan includes a theme, information on membership contests, prewritten newsletter articles, a message from the president, art and logo slicks as well as incentives and recognition for Association and individual efforts.

The NAHB plan provides you with materials to develop your local Association's membership program. Materials may include stickers, camera-ready artwork, and staff resource assistance. Using the NAHB materials can greatly simplify your membership recruitment efforts.

← Goal Setting

Your new member goal each year should be challenging and attainable. Goals should be based on your market potential. This potential can be determined by using data from your Chamber of Commerce, the Census, and the membership histories available from NAHB.

← Prospects

Developing and following-up on members is an ongoing process. Whenever your Association receives information on a prospective member, that information should be immediately referred to one of your recruiters.

▪ Sources for prospects

- current member vendor and clients lists

- building permits

- non-member business references (from member applications)

- cancelled members

- non-member service users (trade show attendees and participants, advertisers, education program attendees, warranty program builders)

▪ Tracking prospects

It is very helpful to have a tracking system for prospects. A computerized system would include date of referral, to whom, follow-up calls, final determination. This system will keep prospects from "falling through the cracks."

← Recruiters

While everyone is involved in the recruitment effort, the more involved members in your Association will be the most active recruiters. Generally, your efforts will focus on board members, Spikes and Spike candidates, the membership committee, and new members looking for involvement. (More Spike information can be found on page 54 of this manual.)

▪ Training recruiters

- Hold training programs for all potential recruiters.

- Use top Spike recruiters as trainers.

- Provide information on the Association and its services as well as information on the recruitment plan.

← Competitions

Most Associations tie their recruitment contests into the NAHB plan. The plan includes individual contests for builder and associate members as well as Association contests. NAHB’s competitions recognize yearlong efforts while Association competitions recognize local and state Associations for their yearlong growth and retention efforts.

← Communications

Providing continuing communications gives recruiters greater incentives. Updates on goal progress should be sent weekly for monthly Association contests and monthly for annual contests. Recognition of recruiters in your newsletter is an excellent communication tool.

← Incentives

Incentives do not need to cost your Association any money. You can solicit sponsors for trips, prizes, and recognition items. Publishing lists of standings is often an appreciated form of recognition.

← Recruitment Campaigns

▪ Recruitment campaigns do not need to be elaborate, or cost a great deal. The most effective campaigns are those that are fun for your recruiters. Campaign formats vary according to each Association. Some are examples include:

- Set time period – One day, week or month membership drive

- General time frame – Spring or Fall Drive

▪ Themes are often added to a drive, for example:

- Fall Kick Off

- Just One Member at a Time

- Each One Get One

NAHB provides themed materials for Association use in their yearlong efforts and provides marketing materials for National Membership Day. Local drives are sometimes planed to coincide with NAHB’s calendar of membership events.

Additional Information

NAHB's Membership Marketing Department, ext. 8351, has extensive information on membership recruitment. The EOC’s AEA Loan Files have many examples of successful recruitment programs.

Membership Retention

Retaining your current members is a great deal less costly than recruiting, more efficient, and of greater benefit to your Association than replacing those members with new ones each year. While this should be obvious, many Associations emphasize the more glamorous side of membership - member recruitment, and ignore the nuts and bolts of member retention.

Membership retention is the day-in and day-out job of your Association. Your orientation, communications, services, meetings, recognition efforts and membership involvement are all components of an effective retention plan.

← Strategies for Retention

▪ Orientation

The new member orientation is an important component of your retention strategy.

A membership orientation is your opportunity to show the new member what the Association is all about. In many cases, it's the only opportunity you'll have to get the new member excited about the HBA. The components of the new member orientation - the member services overview, the information you provide on councils, committees, and special events, and the chance to volunteer, serve to make the new member feel welcome and to encourage the new member to become involved. Some HBAs have experienced problems in getting new members to attend orientations. To make it sound more inviting, they have renamed these events as receptions. The same information can be disseminated, but it doesn’t sound as academic.

▪ Follow-up

After the new member has attended orientation or has been mailed an orientation packet, you should schedule a follow-up call by the sponsor, an involved committee member, or staff member. The purpose of the follow-up call is to find out specifically what this particular member is looking for from the Association, to answer questions, and to be certain that the member knows what services are available from the local, state and national.

▪ Recognition

Making a new member feel that he or she belongs is the single most important thing you can do to retain that member. Some of the ways to provide recognition for new members are:

- a new member column (and photos) in your newsletter

- special badges at meetings

- an introduction at the first meeting by the sponsor

- free tickets to the first General Membership Meeting

- "buddy system" – ask a member to serve as the new member's buddy during the first 6 – 9 months

Don't neglect recognition for renewing members. Many of the same strategies will work for them. Publish a list of renewing members, along with the Association's thanks in your newsletter, announce renewals at the General Membership Meeting, and use a display board in your offices to list the renewals for the month.

← Effective Billings

Billings are a reminder that it's time to renew, but they can do a great deal more. Billings can also remind your members why they pay their dues and what they receive for their payments.

An effective billing plan will contain the following:

▪ Billings for at least three months pre-anniversary and post-anniversary date;

▪ Standardized invoices with changeable computerized messages on the value and benefits of membership or HBA accomplishments over the past year;

▪ Special mailing with list of services; and

▪ After second notice:

- Post-card with official "cut-off" notice

- Certified letter from treasurer announcing possible termination

← Communications Strategies

With the help of your Board and Membership Committee members, the Association should have a telephone renewal system in addition to written communications. Telephone strategies include:

▪ Board member phone calls to members who have not responded to the second renewal notice. Board members report findings at each Board meeting.

▪ Membership Committee members should make phone calls prior to the renewal date and after the date has passed.

▪ Exit interviews - survey cancelled members to determine why they did not renew -- their answers should be a part of any planning process.

← Association Retention Ideas

There are many Associations with successful retention strategies - strategies that you can adapt to your Association. Some examples of Association retention programs and projects follow:

▪ Membership or Ambassador's Clubs

These clubs organize involved members (usually Spikes) into a group that effectively channel the members’ retention efforts. Each Ambassador has three weeks to set up a meeting with the contact person in the new company. The initial visit is to inform the member on Association services and member benefits. Three and nine months after the initial visit, the Ambassador makes follow up phone calls to the contact person. The purpose of the calls is to answer questions and encourage involvement.

Six months prior to renewal, the new member is sent a survey on the use of services. The HBA recognizes Ambassadors by awarding points based on completion of interviews and other retention efforts. All Ambassadors are given complimentary tickets to General Membership Meetings and are recognized by wearing a special ribbon.

▪ Coupon Book

Some HBAs use a series of promotional pieces and a "do business with a member" campaign to retain its members. One of the promotional efforts is a coupon book for HBA services. The book provides discounts for advertising in Association publications, free passes to HBA events, and discounts on booth rentals. There are also coupons for services that are always provided to members. These coupons are included to encourage use of those services.

▪ Business After Hours or Networking Opportunities

Some Associations plan periodic informal networking events to encourage member interaction and compliment other events during the year. These events do not conflict with other meetings or larger Association functions but offer an opportunity to relax, share business ideas and contacts as well as make new acquaintances. They are usually held at public gathering places begin about 5:00 or 5:30 pm, often offer light snacks or pay as you go refreshments. It is informal, the time a member joins the event is flexible, and there is a great deal of opportunity for business networking. Each meeting includes an update on Association activities and business related issues.

▪ Special “privileges” for New Members

Many new members are lost during the first time they receive their invoice for renewal dues. If members don’t see a value in the Association in that first year, they may not come back. In addition to the powerful touch a phone call from a Board member can have (as discussed above), some Associations give new members the right to be first in line for food at general membership meetings. It is also worthwhile to have the new member’s sponsor to be the mentor for that member for his/her first year.

Association Publications

Your Association's publications are your primary tool for getting your message to your members, to government officials, to the business community and to the general public. Every written form of communication you produce is a publication - from meeting notices to newsletters to your directory, including e-mail, and it is important that all of these pieces help enhance the Association's image.

← Establishing an Image

Consistency is the key to establishing your image in your publications. There are several ways that consistency can be established.

▪ Logo

Your Association logo should reflect your mission, be contemporary and attractive, and be prominently placed on your stationary and all Association mailings. Placing the logo on your envelope will also alert your members that Association news is enclosed.

▪ Color

Consistency in color may also help establish the Association's image. Using the same color on stationary, mastheads, and special publications will make an impact on your readers.

▪ Style

Your newsletters, newspapers, and magazines should follow a consistent style each month. Readers will appreciate knowing that the Board report is always on page three, the building permits report on page five, and the Association calendar on the center spread. This doesn't mean that editorial content won't change or that you may wish to revise your style every year or so. But style consistency makes the publication easy to design and easy to read.

← Newsletters

In most Associations, the newsletter is your primary publication for relaying information and publicizing the Association. Whether you are a single staff Association or a large Association with a communications department, there are considerations common to all newsletters. This is expressly important when dealing with E-newsletters as a means of communications to your Association membership.

← Editorial Content

A publishing rule of thumb is to include at least a 60/40 mix of editorial to advertising content. While cost considerations may tempt you to increase the advertising ratio, you may affect readership rates by doing so. An alternative to be considered when budget constraints prohibit hard copy printing, is to invest in desktop publishing/listserve style E-mail distribution. Simple software programs such as Microsoft Publisher are a highly effective means of communications with minimal overhead expense. Editorial content is determined in several ways. In deciding what goes into your newsletter, the Association may wish to consider:

▪ Readership Survey

The most accurate way to determine what your readers want, what features they are reading, and what columns are ignored is to conduct a reader survey asking those questions. Then, respond to your reader's answers by revising your newsletter.

▪ Editorial Board

An editorial board is a group that advises the editor on content, helps select and contact authors, and ensures that your publication reflects reader needs. The editorial board may include your communications or newsletter chair, involved members, community leaders, and area newspaper personnel. The board should establish an annual calendar, meet well in advance of each issue, and establish content for the issue. The board may also assist in making advertising decisions for the publication. For small/mid-size associations, these groups could also be formed from active board members.

▪ Suggested Contents

Association newsletters contain information on HBA events, the local building community, and building issues. Typical contents include:

- Calendar of events

- President's message

- EO message

- Legislative update

- Welcome to new members

- Member profile & membership statistics (new, expired, Spike credits)

- Classified "builder's marketplace" - ads for help wanted and for sale items

- Feature stories on hot topics of local interest

- The Critical Issues Survey is distributed by NAHB to the EOs quarterly is a relevant and excellent source of content information.

← Authors

While you or your staff will be responsible for editing the publication, you can lessen the workload, and provide a variety of articles by soliciting authors. Most professionals are flattered to be asked for an article, and many consultants will consider writing to be an opportunity for free advertising. Author possibilities include:

▪ Speakers at educational programs (wetlands, impact fees, economic impacts, market conditions, etc.)

▪ Consultants on special interest topics (taxes, infrastructure, etc.)

▪ NAHB staff (The Public Affairs Department has articles for your use

▪ State Association staff

▪ Related Association staff (Realtors, Contractors, Chamber of Commerce, etc.)

▪ Area higher education instructors

▪ Use of the bi-monthly NAHB/EOC mailings to acquire template/editorial pieces for insertion into local publications

When soliciting authors, be certain to provide them with guidelines including deadline, length of article, preferred format, topic, previous issues of newsletter, and brief information on the Association and its members.

← Layout

▪ Size - Most newsletters are created by folding 11"x17" paper into four 8 1/2"x11" pages. When this format is used, your newsletter will always be in multiples of four pages.

▪ Masthead - Your newsletter should be instantly recognizable by your readers. Use a consistent masthead to establish this recognition. Include the Association name, the publication name, the Association logo, and the publication date in the masthead. Hiring a graphic artist to design the masthead is a reasonable and worthwhile expense.

A separate part of the masthead is your list of the leadership, newsletter chairman, executive director, editor, and Association address and phone number. This column is often placed on page 2. As an alternative to hiring a paid professional for art creation, consider using a local community college or high school graphic arts department as an in-lieu to recognition for the work or to fulfill a school coursework requirement.

▪ Front Page - The first page of a newsletter should set the tone for the inside by including feature articles and a photo or other graphic devise. You may also want to include a table of contents on the first page.

← Design

Column designs are a matter of personal taste. Most newsletters use a two, three, or four-column design. Three column newsletters tend to appear more formal looking than the two-column design. Four column designs have a great deal of flexibility as the columns may be combined, or the fourth column may be used for headlines or other emphasis. As for masthead design, you may wish to use a graphic artist to design an initial template that you will use each month.

To keep your newsletter looking fresh, use varied techniques for emphasis. These techniques include the use of sub-headlines, large initial capital letters, pull quotes (where a quote is taken from an article and placed in large type), and clip art, photographs, and boxes for features.

← Production

There are many options for producing a newsletter. Your choice will depend on the resources you have available - including staff, budget, time, and computer hardware and skill.

▪ A single staff, small office executive officer may choose to type the newsletter and make copies. A simply produced, neat, proofread newsletter that contains timely information important to your members is perfectly acceptable.

▪ When time and budget allows you may wish to consider producing the newsletter using desktop publishing software. This method will allow you to include graphics, to vary typefaces, and to utilize other special techniques. There are many desktop publishing software packages available, and some word processing programs also give you limited desktop publishing capability.

▪ Desktop publications are usually printed professionally, and photographs are inserted by the printer.

▪ If you have the budget, but neither the staff, time, nor interest in desktop publishing, you may wish to contract with a graphic artist to design the publication, and provide a printer with the design, your editorial content and camera ready advertising. The printer will then typeset and print the publication for you.

▪ A great, fairly inexpensive option is an online newsletter. E-newsletters offer a means to reduce costs with minimal overhead, can be distributed electronically- further saving on printing and postage overhead expenses. In most cases the production can be done in hours with a high-speed Internet connection. Moving to an online publication must be carefully considered, weighting cost, benefits, number of e-mail addresses, etc.

← Distribution

Your completed publication may be sent as a self-mailer or in an envelope with other material. Most Associations obtain a bulk mail permit to economically send the newsletter.

Your newsletter is usually your Association's most visible public relations piece. Wide distribution of the newsletter will benefit your Association by increasing its visibility and by publicizing your community efforts. In addition to your members, mail the newsletter to elected and appointed officials, related Association staff, and community leaders. Many Associations also mail their newsletters to other HBAs within their states to keep your peers informed of Association events.

If Association has a Web site, be sure to update it routinely with inclusion of newsletters.

If electronic medium is used for distribution purposes, be sure that active E-mail addresses are current and reviewed periodically for inaccurate information/e-mail addresses/individuals wishing to decline inclusion in the E-mail string/etc.

E-mails

Carefully consider how E-mails are created, used and distributed throughout the Association. Content should be carefully crafted, containing topic(s) and subject matter only. Remember that once an E-mail has been distributed, that E-mail can be widely distributed and while the predominance of E-mails are appropriate, an ill-advised E-mail can cause irreparable harm to the Association and the executive officer.

Please include the EOC on your distribution list.

Additional Information

For examples of Association newsletters, and information on newsletter production, contact the EOC for use of its Idea Loan File.

Meeting Management

Meetings are the opportunity for you and your staff to demonstrate what you do. For many members, a general membership meeting may be the only contact the member has with your Association. It is important to you and your leadership that meetings run smoothly, cover the information on the agenda, and are completed in a timely manner.

Each meeting of your Association will have a different purpose and a different atmosphere. General membership meetings may be more formally run than small committee meetings, Board meetings may sometimes be controversial, but all meeting preparation, management, and follow-up has many consistent elements. The following should help you ensure that all necessary steps are followed to have successful meetings.

← Meeting Requirements

▪ Meeting Notice – This should be in writing giving the date, time, and location of the meeting. Your bylaws would state the number of days required announcing the general membership meeting. Verbal notification of the meeting is not sufficient. A broadcast fax or e-mail with an RSVP check-off works well for some Associations.

▪ Meeting Logistics - Be sure to survey the room at least one hour before the meeting to make certain the room set-up is correct and that appropriate AV is in place and operative. Check location of lighting controls. Distribute handouts on each chair or at the place setting. Place tent cards and reserved table signs where appropriate for leadership and/or VIPs.

▪ Work with the chairman to start the meeting on time and decide prior to the meeting who will take and process the minutes. Assign as needed.

▪ Once the meeting is underway, monitor room conditions and distribute materials to late arrivals.

← Meeting Protocol

Once a quorum has been met the president or presiding official calls the meeting to order.

A quorum is the minimum number of members who must be present to carry on the business of the Association. Your bylaws should state what constitutes a quorum. The rule regarding a quorum cannot be suspended even by unanimous vote. If a quorum is not met, the only actions that can legally be transacted are to fix the time of adjournment, to adjourn, and to take a recess in order to try to obtain a quorum. Regular business can not be transacted. Emergency action can be taken and approved at the next meeting. Keep in mind that a quorum is not required for certain actions such as committee reports that can be received for information but no action taken.

▪ Reading and Approval of Minutes

In the interest of time you can dispense with the reading of minutes providing you have a motion to dispense with the reading of the minutes and a second. This motion requires a majority vote. The reading of minutes should never be dispensed with unless a provision is made for the correction of the minutes, should the need arise.

▪ Sample Agenda:

- Reports of Officers, Councils and Standing Committees

- Reports of Special Committees

- Unfinished or Old Business

- New Business

- Adjournment (Note: This requires a motion to adjourn, stating the time of adjournment, a second, and a majority vote.)

← After the Meeting

After the meeting you must record the minutes. You must include the following in your minutes:

▪ Date

▪ Time

▪ Kind of meeting

▪ Participants at the meeting

▪ Presence of the chairman/president and secretary or the names of the people in their absence

▪ Minutes of previous meeting approval

▪ All main motions in final form and their status

▪ All verbal notices or motions

▪ All points of order and appeals

▪ All motions to reconsider and name of movers*

▪ Time of adjournment.

*This is a point of great controversy. Some schools of thought say use no names, others indicate to include the name of the person who made the motion. Whichever way you decide be sure to remain consistent.

Minutes should not contain the name of the second, any withdrawn motions, proceedings of the committee or summaries if you have a guest speaker.

← Items to consider with Committee Meetings:

▪ Have specific duties, goals and objectives for all committee members to preview

▪ Work with your chairperson to set up meeting days and locations

▪ Try not to conflict with other important Association meetings or functions

▪ Send reminder notices or make calls

▪ Special seating

▪ Agenda, prepared by staff and reviewed with the chairperson

▪ Have last year’s budget, notices and minutes, if available, for committee members’ referral

▪ Note pads and pencils

▪ Refreshments

← Items to consider for your General Membership Meetings:

▪ Work with your caterer or restaurant regarding room set up. Do you prefer round tables with plated meals or family style service?

▪ Location of podium and microphone, other audiovisual needs, etc.

▪ Use of a head table, a registration table, or a table for handouts

▪ Name tags

▪ Reservation lists

▪ Board Members ribbons if used

▪ 50/50 tickets and collection bowl

▪ Check book

▪ Change, receipt books, invoices and banking materials

▪ Gavel

▪ Agenda

▪ Membership applications

▪ Items for committee chairpeople (e.g. New Member Board, plaques, membership awards, etc.)

▪ Cameras

← Follow-up

Items to consider for meeting follow-up:

▪ Complete minutes or ensure that minutes are completed. Minutes should include:

- Date

- Time

- Meeting place

- List of attendees and presiding member

- Summary of discussions

- Record of all motions and their outcomes

- List of actions to be taken

- Future meeting

▪ Distribute minutes and file copies

▪ Work with chairman to ensure that actions are completed

NAHB OVERVIEW

Introduction to the National Association of Home Builders

The National Association of Home Builders (NAHB) was founded in 1942 with 700 members. NAHB has more than 700 state and local associations and represents more than 140,000 members. 

NAHB is a federation headquartered at the National Housing Center in Washington, DC. NAHB members join the Association at the local level and pay their dues to the local. Local Associations are affiliated with the state and national Associations. NAHB is represented in all 50 states, and Canada.

NAHB is governed by the Board of Directors comprised of elected board members from the local and state Associations. The Board of Directors meet three times a year in Winter (typically in conjunction with the International Builders Show), Spring, and Fall to vote on the policies and procedures of the Association.

NAHB Member Services

While many NAHB members are aware of the services provided by their local or state Associations, the national services may seem less tangible. As the executive officer of your Association, there are many services and resources at NAHB that can help make your job easier. By being aware of these member services, you can more easily answer member questions about what their dues accomplish.

To assist you in this effort, the EOC holds NAHB Orientation for Executive Officers sessions for EOs with a minimum of 9 months experience. The orientation provides an in-depth look at all of the resources and services NAHB has to offer you and your members. These resources include, NAHB Advocacy, NAHB Membership Resources, NAHB Public Affairs, University of Housing, and much more. Registration is free and all attendees will receive a scholarship to attend that will reimburse your travel costs. Please contact the EOC for more information.

The NAHB Member Service Center/Library has copies of the latest books and periodicals related to the housing industry as well as serving as the initial point of contact for callers to the Housing Center. A computerized search system makes research on any topic easy and quick.

← Industry Research

▪ The NAHB Research Center runs tests on building supplies and equipment and approves qualified products. The Center also works on the development of new technologies and answers members’ technical questions through its Home Based Hotline.

▪ The Local Impact of Home Building provides demographic, economic, and housing data.

▪ provides the latest housing forecasts, market trends, in-depth economic analysis and archival data relating to the housing industry.

← Legislative Activities

NAHB monitors all action on issues related to the building industry, lobbies on behalf of member interests, collects data on state and local activities, and promotes grass roots campaigns. The NAHB Legal Research Program does not replace your local attorney, but it will provide you or your members with an understandable response to your legal question – fast – often the same day of your inquiry – saving you time and money. Through NAHB you have access to a computerized database containing over three million court opinions, numerous legal publications, plus all federal and state statutes.

← Education and Training

▪ University of Housing – In order to provide easier access, more efficient management, enhanced program quality, and comprehensive information about educational opportunities, The NAHB University of Housing was formed to consolidate educational offerings into one location. Members may invest in their professional growth and the success of their business by earning a designation, attending an event, or simply taking a course or two.

▪ Designation Programs -- NAHB works with local and state Associations to implement education and designation programs.

- 50+ Housing Council

- CAASH – Regular Certified Active Adult Specialist in Housing

- Builder and Remodeler

- CAPS – Certified Aging-in-Place Specialist

- CGA – Certified Graduate Associate

- CGB – Certified Graduate Builder

- CGP – Certified Green Professional

- CGR - Certified Graduate Remodeler™

- GMB – Graduate Master Builder

- GMR – Graduate Master Remodeler

- Sales and Marketing

- CSP – Certified New Home Sales Professional

- Master CSP

- CMP – Certified Marketing Professional

- MIRM – Member, Institute of Residential Marketing

- Multifamily Designations

- CLP – Certified Leasing Professional

- RAM – Registered in Apartment Management

- Advanced RAM

- HCCP – Housing Credit Certified Professional

NAHB will work with state and local Associations to provide these programs to members, often in the form of joint venture programs.

▪ Educational Seminars – NAHB regularly offers audio seminars on topics such as land development, business management or commercial building to name a few. Marketing for these programs is done via email and on the NAHB Web site.

▪ Leadership Training -- Leadership Training Conferences; provide state and local leadership and executive officers with information and strategies for working together to direct an effective Association and motivate volunteers.

▪ Spokesperson Training -- NAHB’s Spokesperson Training Seminars are designed to help Association leaders be more persuasive and effective in all communication environments. The training provides techniques to deal with difficult media situations and gives participants the confidence and skills to communicate more effectively in their own businesses, in presentations to industry and public groups, testimony and media interviews.

▪ Education Opportunities at IBS -- The International Builders Show offers attendees more than 250 education sessions during the four days of the show. Attendees will find high-impact sessions with ideas, information, tips and techniques they can put to work right away.  Sessions cover a huge array of topics of interest to those in the home building industry, including Economic Trends, Business Opportunities and New Markets, Technology, Green Building, Sales and Customer Focus, Construction Methods, Business Management, Legal Issues, Government Regulation, Architecture, Design and Community Planning.

← Business, Construction, and Legal Assistance

▪ Builder Business Management -- Information on computerization and accounting systems for builders is available from the Business Management Department Services.

▪ Land Development -- Information on all aspects of land development, including plan processing, site design, sediment control, and utilities is available from the Land Development Department.

▪ Construction Techniques and Codes -- The Construction, Codes and Standards Department provides information on national building and related codes and on the latest construction techniques and products.

▪ Legal Assistance -- The NAHB Legal Research Program does not replace your local attorney, but it will provide you or your members with an understandable response to your legal question – fast – often the same day of your inquiry – saving you time and money. Through NAHB you have access to a computerized database containing over three million court opinions, numerous legal publications, plus all federal sand state statutes.

← Council Services

To respond to the diversified needs of its members, NAHB has developed councils to provide specialized services for members engaged in remodeling, commercial building, multifamily housing, manufactured housing, seniors housing, and sales and marketing. There is also a Council specifically for women in the industry. Council services include educational programs, information on industry trends, publications, and meetings.

Councils also maintain their own leadership structures, giving their members a voice in the national Association.

← Industry Information

▪ Publications -- publications provide information on the Association, the industry, and related topics. Builder Magazine features in-depth articles and pictorial essays on all aspects of the housing industry. Specialized publications from NAHB departments focus on particular builder and associate interests.

▪ Public Affairs -- The Public Affairs Department develops programs and publications to increase consumer awareness of rapidly changing conditions in the housing market. In addition, Public Affairs develops materials to publicize the programs, policies, and goals of NAHB

▪ Public Relations Exchange (PRx) – The PRx is an e-mail based communication provided to HBA staff and NAHB members who are interested in furthering the public relations activity of their organization. Sign up to receive e-mails about issue updates affecting your members and consumers, such as the mortgage credit crunch, the housing downturn, smart growth, land use and development, green building, and other public relations-specific information from NAHB.

The Executive Officers Council

The Executive Officers Council (EOC) promotes the professionalism of executive officers and staff serving the state and local Associations affiliated with NAHB.

The EOC was established in 1950 with the goal of providing professional development and education to executive officers. The Council's mission is to:

▪ Provide a forum for builder association executives to further their professional development through training and education;

▪ Provide networking and interpersonal communication opportunities for builder association executives to share knowledge;

▪ Provide a forum for executive officers to serve as a vital resource to NAHB and its leadership in developing and serving the builder and associate membership.

EOC Organizational Structure

▪ Membership

The voting members of the EOC are the chief paid executives of the local and state Associations and chief paid executives of chapters of local and state Associations affiliated with NAHB that meet certain specific criteria.

Non-voting members are volunteers serving as administrators of state or local Associations executive officers of chapters of local chartered Associations, paid staff members of state and local Associations, and the chief paid executives of other Associations who are members of the International Housing Association.

▪ Board of Directors

The EOC is governed by a Board of Directors composed of the president, vice-president, secretary/treasurer, immediate past president, five at-large directors, ten regional directors from NAHB Regions A-E, the Seminar Dean, three presidential appointments, two vice-presidential appointments, one secretary/treasurer appointment, a representative from the Past Presidents' Council and the EOC Executive Director (ex-officio, non-voting). The five EOC at-large directors, and regional directors, are elected by the general membership during the annual Seminar.

The EOC holds its annual meeting at the EOC Seminar. Regular meetings are held in conjunction with the NAHB Spring, Fall, and Winter Board meetings. Special meetings may be called by the president or the Board of Directors.

▪ Committees and Task Forces

At this writing, the EOC has the following Committees:

- Association Issues

- Nominating

- Past Presidents

- Policy Development

- Professional Development/Education

- Professional Partnership

- Seminar

- Scholarship

- State Associations

Committee members are generally appointed by the EOC President, Vice President, and Secretary/Treasurer. Additionally, Committee Chairs are allowed at least two appointments of their choice. Attendance and participation in most EOC committees is open to all EOs. If you are interested in becoming a Committee Chair, or serving on a committee, communicate in writing to the EOC President or contact EOC staff for more information.

Executive Officers Council Services

The Executive Officers Council offers a variety of services to executive officers and their staffs.

Resources

← Sample Forms and Flyers

The EOC contains information that is of general interest to its members. The Resource Hub is a compilation of letters, forms, flyers and other tools used by HBAs across the country that are samples for you to use for ideas and information. This information includes:

▪ EO and staff job descriptions

▪ Salary and benefits information – local and state

▪ Sample EO contracts

▪ Parade of Homes, Garden Show and Golf Tournament information

▪ Non-dues revenue income sources

▪ Membership Resources

▪ Handbook samples (e.g. Personnel Policy Manual)

▪ Endorsement agreements

▪ Guidelines on How-to-Hire an EO.

← Idea Loan File

In addition to its general files, the EOC files all entries of the annual Association Excellence Awards (AEA) program into the “EOC Idea Loan File”. More than 200 entries are received each year. These entries provide a valuable opportunity to learn the administrative and core value member services of NAHB affiliated Associations. File categories include administrative management, community service, public relations, service to members, membership recruitment and retention campaigns, communications, education programs, government affairs and political action, and sources of non-dues revenue.

← Educational Opportunities

The Executive Officers Council provides education for its members on both industry and Association management topics. Education is provided in a variety of ways.

▪ EOC Seminar

The annual EOC Seminar is held in mid to late summer. The location of the Seminar changes each year. Dates and related information are available several years out for planning purposes. Check the EOC Web site for future dates.

This five day Seminar provides more than 50 panels, workshops, discussions, and lectures on topics ranging from the legal aspects of Association management to innovative ways to raise non-dues revenue.

The EOC Seminar also provides attendees with the opportunity to informally network with their peers from across the country. Networking opportunities allow executive officers to exchange ideas and bring home ideas that can be put to use for the benefit of their members.

▪ Professional Development Programs

The EOC usually offers at least eight hours of education programs for executive officers at each NAHB Board meeting. Roundtables and panels offer information on a variety of topics. Past programs have presented information on governance, public relations, time management, and developing political action programs.

▪ NAHB Executive Officer Orientation

The EOC holds NAHB Orientation for Executive Officers sessions for executive officers with a minimum of 9 months experience. The orientation provides an in-depth look at all of the resources and services NAHB has to offer you and your members. These resources include, NAHB Advocacy, NAHB Membership Resources, NAHB Public Affairs, University of Housing, and much more. Registration is free and all attendees will receive a scholarship to attend that will reimburse your travel costs.

The EO Survival Training is offered at Convention and specifically targets first time attendees introducing specifically to Convention IBS logistics/issues for executive officers and their members.

▪ Orientation at Seminar

EO Orientation at Seminar provides executive officers an orientation to the Seminar, the EOC and some basic association management fundamentals.

▪ Issues Briefing

At each NAHB Board Meeting, NAHB staff holds a briefing for executive officers. Attendees receive information on emerging issues in several areas including local, state, and federal government affairs, economics and mortgage finance, technology and codes, environment, and regulatory affairs.

▪ EO Construction Academy

The EO Construction Academy is a 1 ½ day intensive program on the building industry and related topics. Subject matter experts, specialized text and selected audio visual materials, introduce the new executive officer, with less than 3 years experience, to subject areas such as community planning, land development, new home construction, legal and regulatory issues, and in general, issues a builder member faces each day. It is typically offered in conjunction with the Spring Board meeting in Washington at the Housing Center.

▪ Certified Association Executive Designation

The American Society of Association Executives (ASAE) offers the Certified Association Executive (CAE) Designation to experienced Association managers. In order to earn the CAE designation applicants must complete ASAE's Professional Development Form, be qualified by ASAE to become a CAE candidate, complete the study of ASAE program materials, and successfully pass the CAE exam.

The EOC assists members who are interested in pursuing CAE study by ensuring most EOC education sessions are eligible for CAE credit.

EOC Member Recognition

The Executive Officers Council offers recognition to its members through its leadership opportunities and in its communications. There are three specific programs that recognize achievement by executive officers.

▪ Association Excellence Awards

The Association Excellence Awards (AEA) recognizes the accomplishments of Associations in areas of association management and member service. There are many award categories for every size Association. Award entries are solicited in February/March and judged in May. The awards are displayed and presented at the EOC Seminar.

The AEA entries are displayed during the EOC Seminar and available through the Idea Loan File during the rest of the year.

▪ Individual Awards Recognition

In addition to the awards for Association achievement, the EOC presents four individual awards at the Seminar. The awards are the Small Office Honor Award, recognizing the achievements of the small office executive officer; the New EO of the Year Award, recognizing an executive officer’s accomplishment with less than three years experience; the Career Achievement Award, recognizing the experienced executive officer; and the EO of the Year Award, presented in honor of outstanding contributions by an executive officer during a given year. Award entries are solicited in February/March.

▪ Commitment to Excellence

All EOs who attend educational programs related to industry issues and association management are eligible to receive recognition through the Commitment to Excellence Program. Hours are earned by attending EOC, ASAE or local association management education events. Records of attendance are filed with, and maintained by, the EOC office. The hours are also applicable to American Society of Association Executives (ASAE) Certified Association Executive (CAE) program.

EOC Member Communications

The EOC communicates with its members through its regular publications, Perspectives and the Friday Morning E-mail, and in information provided in the bi-weekly EO Mailing.

▪ Perspectives

The EOC newsletter, Perspectives, is published six times per year. This online publication offers in-depth articles, photographs, and guest columns by executive officers, NAHB staff, and experts in association management. Perspectives is distributed online to all executive officers at no charge.

▪ Friday Morning Email

The Friday Morning Email (FME) e-newsletter is a weekly publication for EOC members to stay current with what is going on at NAHB, member benefits and Council news.

▪ Executive Officers Council Membership Directory

The EOC Membership Directory contains information on all EOC members. Photographs are included as well. In addition to listings of the name, Association, address, and phone, fax numbers and e-mail addresses, the Directory includes information on Association programs and projects, and Council leadership. This annual publication is distributed at the International Builders’ Show and may be requested by phone. One complimentary copy per Association is available.

The EOC also offers an online directory that is updated nightly with the most current information.

▪ The NAHB Bi-Weekly Mailing or the EO Mailing

The bi-weekly mailing from NAHB provides information from NAHB departments to state and local Associations. Topics include information on member services, tax law changes, land use issues, and NAHB and EOC programs and special activities. The bi-weekly mailing also provides a listing of current state and local Association employment opportunities as well as other pertinent information of interest to the EO.

▪ EO List Serve

The goal of e-mail list serve is to share information and ideas with your fellow HBA executive officers around the country. This is your forum to ask questions, share best practices, and network among your peers to better manage your HBA. Several NAHB Staff and others pertinent to your professional development are also a part of this list serve in order to better serve your needs as Executive Officers and to help them to stay abreast of your issues and concerns. And it is a free service provided by the Executive Officers Council of the National Association of Home Builders.

NAHB MEETING PROCEDURES

International Builders Show/Convention

Registration for IBS and the Convention takes place online. For members, NAHB typically offers two types of registration – full registration and exhibit registration (fees vary from year to year).

You may obtain a listing of your members registered for the show by visiting the Builders’ Show website and visiting Tools for EOs under the quick links section.

Deadlines vary from year to year. If they register early, registrants will receive their badges by mail.

All registrations after deadline will be on-site. Checks, cash, American Express, Visa and MasterCard payment are accepted on-site.

← Executive Officer Registration

Executive officers and their spouses receive free registration for IBS/Convention. Please, also, use the online registration tool.

← IBS/Convention Hotel Registration

Prior to Spring Board, each state executive officer receives a list of the hotels being used for Convention. The state EO then sends NAHB a list of three hotel choices.

At Spring Board, the Convention Committee meets to assign hotels. Every effort is made to include one of the hotels requested.

NAHB will notify the state EO of the hotel assigned to the state. Once you are notified by the state EO, or get your hotel assignment from NAHB, it is your responsibility to notify your members of the hotel for your block. When registering for the show online, members will be prompted to make hotel reservations at the states host hotel(s). EOs will see the same option when registering.

Additional information

For additional information, contact the Convention Department.

Fall and Spring Board Registration Procedures

Spring and Fall Board registration are simpler than for Convention (IBS) and do not directly involve your office. Two to three months prior to the Board meetings, the Conventions Department will send registration information to all directors, alternate and life directors, committee chairmen, committee members, state and local presidents, and the executive officer. The registration can be done online. There is a registration fee for Directors but, Executive Officers and HBA staff are free.

Hotel registration can also be done online.

← Special Opportunities

Please note that while Spring and Fall Board meetings are open to all members, there are not as many activities of general interest. At Spring Board, both executive officers and members have the opportunity to tour the Housing Center, see the National Housing Hall of Fame and visit the National Building Museum.

During Fall Board, as with other Board Meetings members may have more time to visit any number of Committee Meetings, attend the Regional Caucus Meetings, have ample time for networking and take advantage of the host city. There is no registration fee for executive officers or their staff.

MEMBERSHIP REPORTING

NAHB Director Nominations

A Board of Directors, in accordance with the NAHB Bylaws, manages the affairs of NAHB. NAHB Directors are nominated by affiliated Associations and elected by NAHB members at the annual meeting.

Representation of the Board is calculated by the number of builder members in each state and local Association. The calculation is based on the affiliated local or state Association's builder membership as of October 31 of the year when the calculation is performed. Each Association is notified within 30 days of that date as to the number of directors authorized for the following year.

← Each affiliated local Association that has fifteen builder members in good standing may nominate one director and one alternate director for each 50 builder members or fraction thereof. Example:

▪ 15 builder members = 1 director and 1 alternate director

▪ 51 builder members = 2 directors and 2 alternate directors

▪ 101 builder members = 3 directors and 3 alternate directors

← Each Affiliated State Association may nominate one director and one alternate provided it has a membership of one hundred or more builder members who are members of Affiliated Local Associations or Chapters; three or more Affiliated Local Associations or Chapters within its boundaries; and maintains an office for its State Association to service its members. In addition, the State Association may nominate one additional director and one additional alternate director provided it has fifty or more builder members who are not members of an Affiliated Local Association. In no event shall more than a total of two builder directors and two alternates be nominated.

← Affiliated state Associations may also nominate one associate director and one alternate associate director to the Board. In those states where there is no affiliated state Association, the affiliated local Associations by consensus, may nominate a builder, an associate director, and alternates to the Board.

← At any meeting of the Board that an elected director is not present, an alternate director of the affiliated Association of the absent director shall be qualified to serve as a director at such meeting.

▪ Qualifications

Elected directors shall be builder and associate members of record as listed on the NAHB membership records.

▪ Life Directors

The Board may elect both builder and associate directors as Life Directors provided they are recommended by the affiliated Association by which they are nominated, have served as a voting director, and have attended two meetings of the Board per year for ten or more years. The required ten or more years of service need not be consecutive. Up to five years service as an alternate director may be counted provided they have met the attendance requirements for each of those five years. After elected, Life Directors must continue to meet the attendance requirement to retain voting privileges.

- Life Directors who fail to meet the attendance requirements shall lose their right to vote but not any other rights and privileges enjoyed as a Life Director. Voting status may be reinstated if they meet the meeting attendance requirements for one year.

- A Life Director who has attended two meetings per year for a period of 10 consecutive years after becoming a Life Director shall be designated as a Senior Life Director. At this level, voting rights are permanent with no attendance requirement.

- The benefits of becoming a Life Director are numerous. Unlike national and alternate directors, the number of Life Directors an Association has is not based on its number of builder members. Therefore, if builder membership declines, Life Directors are not affected. However, Life Directorship belongs to the individual and may be moved to another local affiliate with the membership.

← Vacancies

An elected director's position shall be considered vacant upon death, resignation, refusal to serve, or termination of membership. The vacancy may be filled by the NAHB Board upon receiving a nomination by the affiliated Association, and the director shall serve the unexpired term of the predecessor.

← New Directorships

The Board may elect new national directors and alternate directors to fill seats created by qualified newly formed local and state Associations.

← Excused Absence

Elected director may be excused from a missed Board meeting by applying in writing to the Third Vice Chairman within ninety days after the meeting.

Additional Information

For additional information, please contact the Assistant Secretary’s Office.

The Resolutions Process

According to the NAHB bylaws, every NAHB director, and/or state or local HBA, has the right to introduce a resolution or recommendation for consideration by committees and the Board of Directors.

← Resolution

A resolution concerns the impact of government policies on various aspects of the housing industry.

← Recommendation

A recommendation is generally related to the internal business of the Association.

← Resolution Timetable

Ideally, 30 days prior to the Board of Directors’ meeting, the HBA or an individual director submits a proposed resolution to the chairman of the Board. The sponsor is then notified in writing of the NAHB committee to which the resolution has been referred.

At the Board meeting the resolution is considered by the committee, and related committees if applicable. If the committee agrees, the resolution is forwarded to the Resolutions Committee, the Executive Board and the Board of Directors for consideration.

← Executive Officer Role

When an HBA proposes a resolution, a spokesperson from the Association should attend the committee meeting where the resolution has been referred, the Resolutions Committee, the Executive Committee and the Board of Directors. The spokesperson should be well versed on the resolution and be knowledgeable on NAHB policy in that subject area. The executive officer may be called upon to act in this capacity. Whether or not the executive officer serves as spokesperson, it is important that you be available throughout the process to act as a resource.

Additional Information

For additional information, contact NAHB’s Public Affairs Department.

Membership

The NAHB membership process is a joint effort of NAHB and your local association. Elected officers and staff alike need to understand each step of the accounting process, regardless of who maintains your records. An Association’s executive officer (EO)/Elected Secretary and Treasurer are equally responsible for the accuracy of the membership records.

There are currently two methods for reporting and maintaining your membership records at NAHB. The first, and preferred, method is NAHB’s Web Membership System (WMS). WMS is a web-based interface to NAHB’s Association Management System (AMS). It provides executive officers and their staff the ability to view and manage the association’s membership data and provide national membership payment to NAHB for any transactions that require payment.

This online reporting tool is highly recommended by your fellow HBAs and NAHB staff. There is no cost involved to use the system, however, training is required.

The second way to process your membership is to use the paper forms supplied to you by the NAHB Accounting Office. This method works well, but is more error prone as your submitted reports have to be interpreted and keyed into our database. This should be used only if you do not have access to the Internet.

Overview of Activities Involved in the Monthly Membership Cycle

There are four basic activities comprised in each month’s membership cycle.

▪ Affiliated associations are required to collect and report dues for all their members to NAHB.

▪ Affiliated associations need to maintain the accuracy of their members’ data by submitting all member changes to NAHB.

▪ NAHB provides all affiliated associations with a series of reports identifying the status of each of your members in our database. These reports are posted monthly in the WMS System, and/or mailed to your Local office.

▪ Reports sent to you each month are reviewed by you and any discrepancies are to be reported back to NAHB no later than the last day of the month to be included in the current accounting period.

NAHB Membership is an Individual Membership and every membership subscription submitted to NAHB must include an Individual as the primary contact and complete contact information.  Any record submitted where required information is missing will be rejected. WMS users are immediately alerted when required fields are missing and will be unable to continue until the necessary data has been entered.

Finally, there are three primary classes of memberships maintained in the NAHB Database. They are: Builders, Associates, and Affiliates.  Each of these member types is discussed more detail.

The NAHB Accounting Office closes the books for each accounting period on the last day of each month. Regardless of whether you submit your updates (changes, payments, new members, and new contacts) via the Web Membership System or remit them through the mail, they must be received by NAHB no later than the last day of the month.

Types of Membership

NAHB has three primary classes of membership:

▪ Builder Members

Builder members are directly involved in building or remodeling homes, apartments, schools, industrial, commercial, or other structures related to a community, or in land development. They include small-volume builders, production builders, light commercial builders, land developers, and remodelers. A builder joins NAHB through their Local home builders association.

▪ Associate Members

Associate members are members who provide products or services to the home building industry. They include trade contractors and professional service firms such as insurance or mortgage companies. An associate joins NAHB through their Local home builders association.

▪ Affiliate Members

Affiliate members are employees of Builder and Associate members. The Affiliate membership allows employees to enjoy NAHB benefits at a reduced dues investment. Not all HBAs offer the Affiliate membership, nor is it a requirement to do so.

Other membership classes include:

▪ International Members

International members are individuals who reside outside of the United States or conduct a majority of their business in markets outside of the United States. International members join NAHB directly.

▪ Student Members

Students join NAHB by becoming members of a student chapter. To learn more about student membership, contact the Home Builders Institute.

▪ At-Large Members

At-large memberships exist when there is no Local or State home builders association in the members’ area. At-large members join NAHB directly. This is an extremely rare occurrence.

Membership Reporting Obligations of Local/State Associations

Each affiliated association is required to report all members and related dues to NAHB on a monthly basis. All memberships must be reported, including new members, renewals, and any special or limited service memberships that may be offered at the local level. Failure to report memberships in a timely manner is a violation of the NAHB Bylaws and could be cause for revocation of an affiliate’s charter granted by NAHB.

An Introduction of the Membership Accounting Process

The timeline of a membership is broken up into four distinct areas; the active membership, a membership in its grace period, a membership in a cancelled state, and expired.

These stages are defined as follows:

▪ Active (12 months) – A current, paid membership.

▪ Grace Period (30 days after the anniversary date) - Memberships enter the grace period 30 days after the Anniversary Date; no service is lost during this time

▪ Cancelled (31 days after the anniversary date) – Memberships enter a cancelled status 31 days after lapse in membership payment.

▪ Expired (121 days after anniversary date) – Once a membership reaches an expired status, they are no longer considered a member of NAHB, any further action on this member will result in a new membership.

[pic]

The diagram shows when a membership appears on the Dues Payment Report, the Grace Period Renewal Notice Report, and the Cancellations Report. This overview will help EOs and their staffs understand what the process for a national NAHB membership.

← Understanding the Membership Accounting Process

There are four transaction type requests:

▪ new memberships

▪ membership renewals

▪ membership cancellations

▪ membership information change request

Before completing and submitting the report forms, it is important to understand the overall process and how it is managed. The Membership Accounting Process involves several steps.

1. Association indicates renewals, cancellations, new members, and information change requests.

2. Association submits the requests along with payment for any requests that require payment to NAHB for processing.

3. NAHB receives the requests by the last working day of the month. The requests are applied to the NAHB Association Management System (AMS).

Overview of the Local Monthly Reports

The following briefly describes the reports sent to the Locals each month. These reports, unless otherwise indicated, are available in the Web Membership System (WMS).

▪ Cover Letter – Monthly memo from the Director of Data Services sent to Local and State EOs containing important announcements.

▪ Membership Roster – Displays a listing of an HBA’s memberships. The roster provides a complete listing of builder, associate, and affiliate members by classes.

▪ Dues Payment Report – Displays a list of only those memberships that have expired or will expire within 60 days.

▪ Address Change Report – Tracks the recent address changes in each Local Association. Once generated, the report is sent back to the Local association for review.

▪ Local Membership Monthly Report (Statistical Summary) – Lists the engeral information for each Local association such as memberships, member types, and member dues. The Statistical Summary for the State HBA provides a summary of this information for all Locals in the state.

▪ Grace Period Renewal Notice – Lists membership expirations for non-payment of annual national dues within 30 days past the anniversary date.

▪ Membership Payment Distribution – Lists members of an HBA whose membership has been affected by a payment during the current process period. Each member is placed in a group based on their current payment status.

▪ Spike Club Roster – Tracks earned Spike credits for a Local association’s membership. Shows a detailed listing of each member’s current Spike credits, Spike level, and total credits for the year.

▪ New Member Information Form (not available in the WMS) – Every other month the New Member Information Form is included in the mailing to Locals not using the WMS. The Local’s membership size determines the number of forms included. Not applicable for State mailings unless the state is reporting at-large members.

HBAs that use the WMS, by default, will not receive the monthly paper reports by US mail since the reports are available online. WMS users may view and/or print the reports at any time. WMS users who would like to receive the paper reports by mail may “opt in” through the system.

All information must be received by NAHB by the last calendar day of the month in order to be processed on time. Please allow enough time for the mail to reach NAHB if submitting the paper reports.

← Reviewing Monthly Reports

On or about the 15th of each month, NAHB sends Membership Reports to Locals via US Mail or posts the reports on the Web Membership System (WMS). Every Local receives a monthly reports package. Locals who utilize the WMS will not receive mailed reports, as they can generate their reports directly from the WMS.

The Cover Letter is a monthly memo from the Director of Data Services sent to Local and State Executive Officers (EOs) containing important announcements. Here is an example of a cover: letter.

Important information pertinent to the HBA is found here. Please read the cover letter for important updates and upcoming events.

Spike Credits

The Spike Program is NAHB's most essential membership recruitment tool. The program provides recognition for HBA members who actively promote recruitment and retention.

← Earning Spike Credits

Spike credits are earned when a member sponsors a new NAHB member. The Association reports the sponsor on the NAHB New Member Report. When there is more than one member in a company, be certain to assign a sub number to the individual sponsor in the space provided.

← Recruiter

Recruiters earn .5 credits for a new council member when the council membership is in conjunction with a new NAHB membership and .25 credits for a council member's subsequent renewals. Report the sponsor and sponsor number of the new council member on the Council New Member Reporting form.

For renewals

Spike Credits may also be earned when a member renews. The first year renewal is automatically credited to the initial sponsor. This credit is reported to you on the NAHB Dues Payment Report. After the first year, you may designate a member to receive the renewal credit in the space provided.

You may change the name of the initial sponsor for the first renewal year only if the initial sponsor is no longer a member of the Association.

← Spike Candidates

When a member earns the first Spike credit, that member becomes a Spike candidate. Spike candidates have earned from one through five recruitment or renewal credits.

← Becoming a Spike

To become a Spike, the member must earn six Spike credits within two consecutive years (January 1- December 31). Six credits must be earned by December of their second year of recruiting. For individuals that do not earn six credits by December of their second year of recruiting, all of their previous year’s credits are forfeited.

← Life Spikes

To become a Life Spike, a member must earn at least one credit a year until 25 credits are earned. Life Spikes have no further requirements. If a Life Spike's NAHB membership lapses, the credits will be reinstated on request if membership is reinstated.

← Spike Party

Executive Officers can obtain two complimentary tickets to the Spike Party. Spike members, including Life Spikes, in good standing may attend the Spike Party if they have earned at least one new member credit during the membership year. It is one of the biggest events at the Convention. Tickets are required.

Additional Information

For additional information on the Spike Program, contact NAHB's Membership Services Department.

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