What’s Inside Highlights from the 2009 Joint Convention Meet Your New Board Members
Connections is published for the Mississippi Society of Association Executives (MSAE) P.O. Box 12467 Jackson, MS 39236 Phone: 601.366.7400 Fax: 601.853.4283 Web: msae-net.org
BOARD OF DIRECTORS President Mike Pepper Vice-President Layne Bruce Past President Bob Wilson Secretary-Treasurer Shari Veazey
EXECUTIVE MEMBERS Danny Gleason Peggy Lockert Marty Milstead Linda Ross Aldy
ASSOCIATE MEMBERS Mary Sampson Kim Terrell Penny Quave Kim Thomas
EXECUTIVE DIRECTOR Amy Wilson
Published by: Creative Marketing Concepts 1085 Chesson Hill Drive Fitzpatrick, AL 36029 Phone: 334.725.0093
Highlights from 2009 Joint Conference
Does Your Board Have Culture?
2010 Board of Directors
Employment Challenges in a
Changing Political Environment
Bryant Promotes Budget Reform, Healthy Living
Paper vs. Electronic Planners
We Are Tax Exempt. Why Do We Owe Taxes?
Living Longer, Healthier Lifestyles
Welcome New MSAE Members
Calendar of Events
For Advertising Information Call 334.271.0930
Presidentâ€™s Perspective Mike Pepper, President MSAE
s the Mississippi Society of Association Executives winds down another year, I want to thank everyone for their support during these turbulent economic times. Association members have been confronting challenge after challenge with now a glimmer of light at the end of the tunnel. As the Association prepares for the yearâ€™s end, I want to make a request for you to communicate with the current and/or upcoming board members on ideas for the betterment of your Association. A list of these board members is provided below. We will have our annual board retreat in order to discuss goals for the upcoming year as well as detailed programming needs. They need your important input. Always feel free to contact me for any of your concerns or goals for the Association. We are looking forward to another great yet challenging year. We have so much to be thankful for during Thanksgiving as well as the celebration of Jesus at Christmas. I would like to take this opportunity to express my gratitude to our Board members whose terms expire at the end of 2009. Mary Sampson and Kim Terrell have served faithfully as Associate members and Peggy Lockert and Dan Gleason have contributed as Executive members to enhance the Board of Directors. The insights & experiences of these members have influenced and improved MSAE. We welcome newly elected Board members Kristin Brock and Christine McInnis as Associate Members and Carol Hardwick and Donna Yowell as Executive Members. We look forward to a new year with this Board of Directors.
MSAE Thanks our 2009 Joint Conference Exhibitors Alabama Gulf Coast CVB Astor Crowne Plaza New Orleans Avant-Garde Consulting Services Avectra Baton Rouge Area CVB Battlehouse & Riverview Renaissance Hotels Beaches of South Walton Beau Rivage Resort & Casino Bourbon Orleans Hotel Chateau Bourbon - A Wyndham Historic Hotel Cottage Rental Agency Seaside Courtyard by Marriott Gulfport Beachfront Hotel Creative Marketing Concepts Crowne Plaza Baton Rouge Crowne Plaza NO Airport DeSoto County Tourism Edgewater Beach Resort Embassy Suites Jackson - North/Ridgeland Embassy Suites New Orleans Emerald Coast Conference Center Emerald Coast CVB Emerald Grande, Legendary Resorts Grand Hotel Marriott Resort Greenwood CVB Harrah’s Tunica Highpointe Hotel Corporation Hilton Baton Rouge Capitol Center Hilton Garden Inn - Madison, MS Hilton Jackson Hilton Pensacola Beach Hilton Pensacola Beach Gulf Front Hilton Shreveport Holiday Inn - Lake Charles Holiday Inn Express Holiday Inn Sunspree Hollywood Casino Bay St. Louis Hot Springs Convention & Visitors Bureau Hotard Coaches, Inc. Houma Area CVB Hyatt Place Jackson/Ridgeland IP Casino Resort & Spa Jackson Convention & Visitors Bureau Jackson Convention Complex CONNECTIONS
L’Auberge du Lac Casino Resort Maison Dupuy Hotel Marriott Baton Rouge Matthews, Cutrer & Lindsay, P.A. Memphis CVB Meridian/Lauderdale county Tourism Bureau Mississippi Gulf Coast CVB Mobile Bay CVB Monroe -West Monroe CVB MS Coast Coliseum & Convention Center MSU Riley Center Natchez CVB Natchez Grand Hotel / Natchez Manor New Orleans Metropolitan CVB New Orleans Steamboat Old Capitol Inn Oxford CVB Palms of Destin Paragon Casino Resort Hotel & Conference Center Pearl River Resort Pensacola Bay Area CVB Perdido Beach Resort Renaissance Montgomery Renaissance Ross Bridge Resort/ Marriott Shoals Ridgeland Tourism Commission River Room Conference Center Royal Sonesta Hotel Sandestin Golf & Beach Resort Sheraton New Orleans Shreveport-Bossier CVB Silver Slipper Casino Southwest Louisiana/Lake Charles CVB St. Tammany Tourist Commission Tara Wildlife The Beach Club The Court of Two Sisters Restaurant The New Orleans School of Cooking The Ritz-Carlton, New Orleans Tunica Convention & Visitors Bureau Tupelo Convention & Visitors Bureau Vicksburg VISIT HATTIESBURG W Hotel New Orleans 7
2009 Joint Conference Highlights
asy – Breezy. That’s the atmosphere the nearly 200 attendees of the LSAE/MSAE joint conference enjoyed at the Hilton Sandestin Beach Resort & Spa.
The Sandestin Hilton staff offered members a warm welcome with the opening reception in the exhibit hall which offered a delightful environment for members to meet and greet. The opening night dinner, also sponsored by the Sandestin Hilton, was a delicious buffet of the gulf’s finest foods. No experience was required at the casino tables. Monte Carlo Productions, with its friendly and patient staff, showed everyone a good time in the ‘casino hall.” “We were pleased to see everyone who showed up in Destin for the convention,” said Layne Bruce, 2009 conference chair. “We thank the Sandestin Hilton for putting on such a good show - both nights were fantastic.” The Program Committee did an outstanding job creating educational sessions that were relevant to our membership. From social technology to PR strategies, the sessions promised something new for everyone. The Services Panel was well received with questions and answers from some of our vendors. Though members were watching the weather all morning between meetings, the storms passed and the afternoon proved to be a great time of networking and fun. Beach activities were sponsored by the Mississippi Department of Tourism. Due to the unpredictable weather, the beach activities were moved safely to the pavilion at the nearby pool and folks just pulled up chairs and visited. Unexpected entertainment was provided by Phil Gagnet with his hysterical stories and fun mysteries to solve. It turned out to be a casual, relaxing afternoon by the pool while others enjoyed a game of golf or shopping at the nearby outlet mall. Associate Members had several opportunities to promote their business or property in the exhibit hall at the reception, breaks and during the silent auction. “We are particularly grateful to vendors and exhibitors for making the trip and supporting us,” said Bruce. The Silent Auction, a favorite event for many MSAE members, brought attendees to the exhibit tables to preview and bid on the auction items. The silent auction raised over $8,000. Proceeds are raised to support members who are studying for the CAE & CMP credentials. “It’s very challenging to host a trade show these days, and it is a testimony to our membership that as many exhibitors showed up,” said Bruce. “Next year we’re looking to build a bigger & better event that will be meaningful to all of the attendees.”
Show Your Team Spirit!
MSAE Thanks Our Convention Sponsors Platinum Level
Hilton Sandestin Beach Golf Resort & Spa Beaches of South Walton Sandestin Golf and Beach Resort
Mississippi Department of Tourism
Gold Level Ridgeland Tourism Commission Perdido Beach Resort Paragon Casino Resort Louisiana’s Other Side Shreveport-Bossier CVB Vicksburg Monte Carlo Productions Association Studios Mississippi Gulf Coast CVB
Bronze Level AL Gulf Coast CVB Beau Rivage Resort, Casino & Spa Convention Display Services Monroe-West Monroe CVB MSU Riley Center Oxford CVB Pearl River Resort Marriott Renaissance Resort Collection along the Robert Trent Jones Golf Trail Royal Sonesta
Not Your tYpical
D i s c u s s i o N.
Then again, you didn’t spend months planning your conference or meeting to be typical. Tunica, Mississippi, offers up to 200,000 square feet of flexible meeting space and thousands of luxury hotel rooms. With the excitement of nine world-class casinos, three championship golf courses and dozens of premium dining spots, your meeting or conference is sure to be a big draw. All of this is available at affordable prices and only 30 minutes south of Memphis.
Begin the discussion for your next meeting today. Call or visit our website to submit an online RFP.
1.888.4TUNICA H TUNICATRAVEL.COM facebook.com/tunicaMS
9 CASINOS H 63 00 ROOMS H 24 / 7 FUN 12
Solutions For All Your Publication Needs Your association is unique and so are your communication and marketing needs. We understand the importance of consistent and interesting communication with your members. Trust Creative Marketing Concepts for professional, custom designed publications.
We can design, create, and publish your: • Magazines • Newsletters • Brochures • Membership Directories and Buyers’ Guides We Also Offer Complete Mailing Services
Creative Marketing Concepts Creative Ideas…Creative Solutions
Terri Mendez | email@example.com 334-725-0093 877-363-0832
MSAE Salary Survey If you would like a detailed or summary copy of the 2009 MSAE Executive Salary Survey contact Amy Wilson via email firstname.lastname@example.org or call 601.853.4282. *Please note that MSAE members will also have an opportunity to participate in a national Association Compensation survey within the next few weeks. Please watch your emails from ASAE (American Society of Association Executives).
Does Your Board Have Culture?
ver time, an association develops a sort of “leadership culture.” These are traditions and silent agreements that are not likely recorded in any manuals, minutes or policies. For example, they may agree that, “We do not discuss our own businesses at the board table – it wastes time and distracts from our focus on the association.” New leaders can benefit by understanding the organization’s culture. Board members who grasp the culture usually contribute quicker and more effectively. Though culture is not set-in-stone, it is a basis for knowing the expectations and traditions of the organization. Here are examples from many organization boards: 1. Listen in order to understand; don’t listen in order to debate. 2. Have disagreements inside the boardroom – do not carry them outside. 3. Base your decisions on the future; avoid micro-management and the tactical error of focusing on administration issues. 4. Agree to disagree – leave the emotion out. 5. Be brief. No “war stories.” No personal experiences. Don’t repeat. 6. Focus on the issue at hand as it impacts the association, not as it impacts you personally – you represent the corporation when you sit at the board table. Check personal agendas at the door. 7. Be open to considering new ideas and new methods. 8. You are under scrutiny by the members – act as a cheerleader for the association. 9. Keep in mind that membership is 100% optional; every board vote and action will either encourage or discourage a member from joining or renewing.
10. Motions belong to the board as a whole, not to an individual on the board. Similarly, results belong to the board, not to an individual on the board. 11. Although you may come from or represent a specialty, chapter or constituency, when you are on the board you represent the association as a whole. 12. Don’t feel that you have to comment on every issue. Comment when you have something of value in reaching a wise decision on an agenda item or issue. 13. Study the governing items of the association: agendas, minutes, bylaws, strategic plan, articles of incorporation, mission statement and Robert’s Rules of Order. 14. Never be afraid to ask for help. 15. Respect the staff; they facilitate the work of the board. 16. There are no “sacred-cows”; let’s not hide anything under the rug but attach all issues openly and fairly. What traits, traditions, or cultures are evident in your organization? Board culture should be passed on to incoming leaders. Take an opportunity to discuss traditions with your own leaders and record it for future boards. Robert C. Harris, CAE, teaches association management, trains leadership, facilitates strategic planning and conducts association efficiency and operations assessments through audit sampling. He can be e-mailed at bob@RCHCAE.com. He offers free association management documents at www.nonprofitcenter.com. He is founder of the Association Self-Auditing Process® used by nearly 3,000 associations.
2010 board of directors Following the Joint conference in Sandestin, MSAE held its annual membership meeting. The following slate of officers was presented to the membership by the Nominating Committee: Executive Members: Carol Hardwick, MS Economic Development Council Donna Yowell, MS Urban Forestry Council Associate Members: Christine McInnis, Jackson Convention & Visitors Bureau Kristen Brock, VISITHATTIESBURG After a careful review of the MSAE Bylaws, the Executive Director and Board of Directors interpreted the language to read that the President, Vice-President, Treasurer and Immediate Past President should serve two consecutive terms. There was not enough time to make a presentation to amend the bylaws prior to the Annual Meeting. Therefore, the current officers agreed to serve another term and bring a bylaw recommendation before the membership at the membership meeting at the Mid-Year Conference in Natchez, March 2010. President, Mike Pepper, MS Road Builders Association Vice-President, Layne Bruce, MS Press Association Treasurer, Shari Veazey, MS Municipal League Immediate Past President, Bob Wilson, MS Main Street Association The following Directors will remain until their terms end at the end of 2010: Executive Members: Linda Ross Aldy, MS Optometric Association Marty Milstead, MS Home Builders Association Associate Members: Kim Thomas, Harrahâ€™s Tunica Penny Quave, MS Coast Coliseum & Convention Center
MSAE 2010 Mid-year Conference to the
March 28-30. 2010
Site meetings and workshops at the beautiful Natchez Convention Center! Enjoy wonderful food, fun and networking! Visit historic sites like Longwood Plantation,
Natchez Manor Bed & Breakfast and the Eola Hotel. Experience the Downtown Ghost Tour!
For more information visit our website at www.msae-net.org
Employment Challenges in a Changing Political Environment 5. The EEOC, Increasing Charges and Expanding Employee Rights As recently as 2005 and 2006, the number of discrimination charges filed with the EEOC each year was approximately 76,000. However, in fiscal year 2008, the EEOC received a total of 95,402 charges. The number of charges filed with the EEOC increased by 15% over 2006-2007, and the number of charges filed with the EEOC in 2007-2008 increased by 20%. During the past two years, there has been a 50% increase in age discrimination charges and retaliation charges filed at the Jackson, Mississippi Area EEOC office. Since filing an EEOC charge is often a prerequisite to filing certain types of employment discrimination lawsuits, the increase in EEOC charges is a precursor to an increase in employment discrimination lawsuits. Congress has also expanded the EEOC’s jurisdiction with the Genetic Information Non-Discrimination Act (“GINA”). Generally, GINA does not allow employers to “request, require or purchase” genetic information about an applicant or employee. On February 25, 2009, the EEOC released proposed regulations regarding implementation of GINA, and the EEOC must publish its final rules by May 21, 2009. GINA’s overall employment provisions become effective November 21, 2009. Congress has also expanded the Department of Labor’s jurisdiction via recent amendments to the FMLA. In addition to already mandated twelve weeks leave for the birth of a child; for adoption/foster care; the care of a child, spouse or parent with a serious health condition; or an individual’s care for his/her own serious health condition, the FMLA now provides for “exigency leave” and “service member leave.” “Exigency leave” permits an employee up to twelve weeks leave because of any qualifying exigency arising out of Armed Forces active duty (or the notification of an impending call/order to active duty) of a spouse, son, daughter, or parent. “Service member” leave entitles an employee who is the spouse, son, daughter, parent or next of kin of a “covered service member” to take twenty-six workweeks of leave in order to care for a “covered service member.” A “covered service member” is a member of the Armed Forces “who is undergoing medical treatment, recuperation or therapy … for a serious injury or illness.” Both exigency leave and service member leave may be taken intermittently. The ADA Amendments Act of 2008 substantially expands the definition of “disabled” and increases the number of individuals covered by the ADA. Effective January 1, 2009,
3 of 4
by: Armin J. Moeller, Jr. Balch & Bingham LLP
the ADA Amendments Act specifically rejects Supreme Court decisions which conservatively interpreted ADA coverage, provides that the definition of disability “shall be construed liberally,” and redefines how an impairment “substantially limits” a major life activity to mean merely that the impairment “materially restricts” a major life activity. Accordingly, an employee is now covered by the ADA if his/her physical or mental impairments merely “materially restrict” a major life activity whether or not the impairment “substantially limits” the activity. The ADA amendments also add a number of items to the list of matters considered to be “major life activities.” For example, walking, seeing, and hearing were always considered major life activities. However, the expanded list includes eating and concentrating. Accordingly, an individual is “disabled” if he/she suffers from eating disorders or difficulty concentrating. Other changes include: a. If an individual once had a covered impairment but the impairment is in remission, the individual is covered by the ADA, even if the impairment never again manifests itself. b. Measures that mitigate the impairment, including medications, cannot be considered in determining whether the impairment “substantially limits a major life activity.” c. Individuals whose conditions/impairments are controlled through medication or other means now remain covered by the ADA and can maintain disability claims. 6. Whistleblower/Retaliation Dangerous
The fastest growing category of charges filed with the EEOC are those claiming retaliation. Although retaliation claims typically accompany another claim (such as race or sex discrimination), retaliation claims have now eclipsed all other types of claims filed with the EEOC, except for race discrimination claims. Both whistleblower and retaliation claims frequently result in favorable jury verdicts and substantial damages awards. In addition to the False Claims Act (where whistleblowers assert that a government contractor billed the government for unallowable costs and can receive part of the recovery) and the Sarbanes-Oxley Act (which encourages whistleblowing against companies who prepare misleading financial statements upon which individuals
or organizations rely), employees are protected against retaliation under a variety of laws including OSHA; the ADA; the Age Discrimination and Employment Act; the Employment Retirement Income Security Act; the Fair Labor Standards Act; and FMLA. The Deficit Reduction Act of 2005 encourages whistleblowing and retaliation against those speaking out to protect and prevent Medicaid fraud. Less understood by many is Mississippi’s state law protection for employee whistleblowers. Since McArn v. Allied Bruce-Terminix Co., Ltd., 626 So.2d 603, 607 (Miss. 1993), Mississippi law has prohibited retaliation for an employee’s refusal to participate in an illegal act. Mississippi court cases also prohibit retaliation for reporting illegal acts of an employer or retaliation for reporting a coworker’s illegal acts that relate to the employer’s business. Mississippi juries have awarded substantial verdicts to employees alleging retaliation claims under these circumstances.
The American Reinvestment and Recovery Act (“ARRA”), also known as the “stimulus bill,” expressly encourages employees to disclose their beliefs regarding mismanagement, waste, dangers to public health or safety, and abuse or unlawful activity concerning federal funds. The Act’s relevant provision covers all employers receiving federal funds. A whistleblowing employee is protected if he/she “reasonably believes” they have information or evidence of gross mismanagement in a contract/grant; waste of covered federal funds; abuse of authority related to the funds; or a violation of law, rule or regulation related to a contract, grant or award using such funds. Complaints are to be filed with the Inspector General of the government agency providing the funds, and disclosures are protected even if made in the ordinary course of the employee’s duties. The employee’s burden of proof of mismanagement has been lowered to proof by circumstantial evidence, but the employer’s burden of proof to defend itself has been raised to require proof by “clear and convincing” evidence that the employer would have taken its action against the employee in any event. The ARRA does not provide any limit on the damages an employee may recover.
Experience the beauty of Mobile at the
September 19-21, 2010 Renaissance Riverview Plaza Hotel Mobile Bay Conference Center
For more information visit our website at www.msae-net.org Photos Provided by Mobile Bay Convention & Visitors Bureau: Dauphin Island Sea Oats and Pier, Photo credit: Mike Henderson, Mobile Bay Sunset, Photo credit: Tad Denson/MyShotz.com
GET $25 FREE
Star Play for becoming a new Club Hollywood member! CODE: MSAE Bring coupon into Club Hollywood for details. Photo I.D. required for new membership. Must be 21. Expires 10/31/09. Valid at Hollywood Casino Bay St. Louis only.
Bryant promotes budget reform, healthy living onsistent shortfalls in state revenue collections might not be too much of a surprise given the downturn in the economy, but Mississippi Lt. Gov. Phil Bryant told MSAE members the state’s budget policy of revenue projection is ‘silly’. “We’re just guessing,” Bryant said at a Lunch and Learn program at the Mississippi Museum of Art Oct. 28.
Revenues have been off by about 10 percent for several months and the trend is not likely to abate anytime soon as Mississippians feel the full brunt of a national recession. Still, Bryant says state lawmakers insist on crafting a budget around the tradition of revenue projection. Bryant said it is an ineffectual process for creating a realistic budget and akin to using a crystal ball. He intends to introduce a proposal this fall to redesign the budgeting process and pattern it after other state programs in Louisiana, Texas and Oregon. The performance-based budget is a “beautiful, beautiful system,” Bryant said. “There will be a lot of whining and wailing in Jackson,” he said, because lawmakers don’t like to change the way of business in the state capitol. “I have spoken to many groups in the state about the state’s budget process, and I have asked them all to raise a hand if they think the current system works. No one has ever raised a hand,” he said.“When I worked for the sheriff’s department, we called that a clue.” The performance-based system would take into consideration an agency’s effectiveness at meeting its own budget. In a time when agencies ask for “more and more” every year, the lieutenant governor said a performance-based system would give legislators important benchmarks to measure success and effectiveness of state agencies. Bryant said he is going to propose his alternative budget process in November and asked MSAE members to support the initiative. “We have got to change this thing,” he said. In addition to budget reform, Bryant said another goal of his office is to increase transparency in government. He intends to push a plan that will make broadcasts of legislative sessions available on television. “Government ought to be transparent,” he said. “I believe in direct democracy.” Bryant also updated members on a new health initiative led by his office and other lieutenant governors across the country. “Heart in Your Hands” is a no-cost health improvement plan backed by the National Lieutenant Governors Association. Bryant presented brochures during the luncheon and said a history of heart disease in his own family has led him to live a more healthful lifestyle. He encouraged MSAE members to take the program back to their organizations and families and help spread the word about the program, which is free and available to the public at www.ltgovernorschallenge.com. “I want to make Mississippi the number one state participating in the program,” he said. “Let’s make Mississippi first at something.”
Pie charts. Spreadsheets. Sales reports. When they â€™re presented within the cutting-edge Emerald Coast Conference Center and perused where shimmering green waters meet sugar-white sands, even the most routine paperwork can seem remarkably beautiful. The moments you live for live here.
destin-fwb.com /meetings Destin
Fort Walton Beach
Paper vs. Electronic Planners?
veryone needs to use a planner. If you are not, you are most likely wasting a lot of time each day. But which is better to use, a paper or electronic planner? I get this question often and here is my answer – most people have to use a combination of both. You really can’t be all electronic or all paper when it comes to using and organizing your information. You do need a primary tool, but you have to know how to blend it with the other. Pick any kind of project or task and you most likely have paper information as well as electronic information associated with it. So which one wins the place of primary tool? For me, it’s electronic. However, the fact is there is no one system or tool that is perfect for everybody all the time. In my role as a productivity expert, I help people examine their tools and systems and determine which is best for them. I used to be a die-hard Franklin Covey paper planner master. As my business grew and lifestyle changed, managing the increasing amount of information and new contacts with my paper planner was no longer working for me. A few other factors influenced my decision to bite the bullet and retire my paper planner. First, more and more of the information I received for scheduling or to be followed up on was now coming to me electronically. Rewriting all of the information by hand was a waste of time. Printing out emails only to manage more paper was a waste of time and resources. Then, changes that often happened – a rescheduled meeting, having to push back a planned task, etc., were making chaos of my organized work week on paper. At the time, I didn’t know a gigabyte from a mosquito bite, and taking the time to learn a whole new world of applications, habits and language was very overwhelming to me. I admit, I procrastinated on making the change. Then I reminded myself, it’s not going to get better, probably only worse, and as a professional organizer and time management expert it was necessary for me to learn this skill. So I did and boy am I glad.
by Kimberly Medlock Knowing that about 60% of American companies and most of my clients use Microsoft Outlook, I decided that would also be my platform of choice. The more I researched it and found out all the cool things it could do, the more I got excited about learning how to use it. Most just hit the send/receive button all day long. I use it as a “personal assistant.” It helps me manage my todo list, calendar items and hundreds of contacts. I set up reminders, color code, record notes and prioritize with it. I am now a Microsoft Certified Outlook Specialist and show others how they can use it as an awesome productivity and information management tool! Trust me, it’s not boring – it’s actually quite exciting to learn how simple it can be to take control of your time! The most common objections I hear are “What if your computer crashes?” and “I like to write things down.” (I address these concerns in the full-version of this article.) Instead consider the main goal - a tool or system that helps you organize your time and stay on track with commitments and goals. The 5 main factors should be the ability to manage your tasks, calendar, contacts, notes and its accessibility. Any tool or system will take practice to use correctly. Whether using an electronic or paper planner, you have to make a 100% commitment to use it every day. Remember, no system is perfect all the time, so don’t be quick to give up. And remember, your success will always be more influenced by the habits you create than the gadgets you use. Kimberly Medlock serves as V.P. of the National Speakers Association, Tennessee Chapter, is a Board Certified Professional Organizer, Microsoft Certified Outlook Specialist and a Time Management Expert, coach and author. For the full version of this article, comments, or more information on how Kimberly can help your organization be more productive, visit www.kimberlymedlock.com or 662-893-7933.
We are tax exempt. Why do we owe taxes? Charles R. Lindsay, CPA
rade Associations receive an exemption from income tax to carry on activities that promote and strengthen a particular industry. When the association moves into functions that are not part of its exempt mission, revenue generated from nonexempt activities is taxable. These activities are classified as Unrelated Business Income (UBI) and are subject to regular income tax. Unrelated business income tax prevents tax exempt organizations from having an unfair advantage when competing with for-profit businesses. If an exempt organization conducts an activity with the same frequency and continuity and in a similar manner as a for-profit organization, it cannot be exempt from tax for this similar activity. Simply stated, income derived from activities unrelated to a tax-exempt organization’s purpose is taxed as if earned by a comparable for-profit entity. This income is subject to tax at the regular corporate rates. In computing unrelated business income tax, normal business deductions may be used to reduce the taxable amount. There is a deduction for the first $1,000 of net unrelated business income. So, tax is calculated, at corporate rates, on any net income exceeding $1,000.
differently from sponsorship income. When a donor makes a cash or in-kind contribution and the donor’s name and logo are acknowledged in a printed program, no UBI is generated. This is a minor technicality, but allows some revenue to be exempt from tax. Sponsorship ads are limited to recognition and cannot encourage the reader to purchase as a result of the ad. So, look closely at the way you recognize sponsors of your events. Be sure that if you offer an ad in your publication in return for sponsorship, you limit the ad to simply recognizing the donor. The sponsorship ad should thank the donor and should not promote their services. When you do this, the sponsorship fee is not considered to be UBI (taxable revenue). Do I need to worry about any other activities being taxable?
Is all advertising revenue taxable?
Yes. Any commissions received from the endorsement and/or sale of a product are considered taxable. Often, we see trade associations receive commissions from promoting an insurance product. This revenue is generally taxable. When you endorse an insurance product, you are considered to be competing with forprofit businesses, and therefore the commissions are UBI. Of course, any cost, such as an allocation of staff salaries, may be used to reduce the tax burden. Good record keeping is a must.
Advertising income is a common example of UBI. Previous court decisions have determined that revenue from advertising in a magazine, journal, directory or website is Unrelated Business Income (UBI), and therefore taxable. The Supreme Court has held that such advertising is taxable even though it may have been educational or informational. The gross revenue from ad sales is reduced by the proportionate share of related expenses to arrive at net taxable income. Here’s a tip for you. Advertising income is treated
Management fees are UBI. When an association gets into the business of managing other associations, it becomes subject to UBI. The activity is not considered to be part of your exempt mission and therefore is considered to be UBI. Rental income can be considered taxable in some situations. The law is very specific about this activity. If you have rental income, I would encourage you to consult your tax advisor. (That’s the easiest way to explain it). Don’t sweat; back in 1976, the courts clearly excluded the CONNECTIONS
rental of exhibit space at a convention or trade show. We hope this article provides you with some great I know you were wondering about this. That revenue conversation at those holiday parties. We wish you a is clearly not taxable. happy holiday season. Can UBI jeopardize our tax exempt status? YES. If unrelated business income comprises a “substantial” portion of an exempt organization’s income, the organization risks losing tax-exempt status. There is no fixed percentage or mechanical test for determining what constitutes a substantial portion. We advise clients to look hard at this when it approaches twenty percent of gross income. At this point, the best tax planning tool is to establish a taxable subsidiary and move the unrelated activity to a wholly-owned subsidiary. The subsidiary may freely engage in commercial activity without fear of loss of tax exempt status.
Kimberly Medlock, CPO email@example.com www.kimberlymedlock.com
Charles R. Lindsay is a Certified Public Accountant who works with individuals, corporations and tax exempt entities. He is President of Matthews, Cutrer & Lindsay, P.A., an accounting firm located in Ridgeland, MS. He is also Chairman of the MS Society of CPA’s committee on nonprofit accounting.
Give your members what they want and what they need - the systems, techniques and confidence to get things done! Need an expert speaker with a message that matters?
“I just wanted to thank you for one of the best received programs we have had at our Manager Training. The managers and staff enjoyed the presentation immensely with all evaluations as ‘excellent.’” Bob Wilson - Past Pres., MSAE Executive Director for the MS Main Street Assoc. “Ok - I’m a fan! Everyone is buzzing about your session at our LA. Travel and Tourism Summit last week. I heard from participants that you had saved them time and money in your session. Bob said that I would love you and he was right. You were practical and handled an audience with varied levels of experience.” Darienne Mobley - LTPA
• How to Get More Time Out of Your Day • Get Organized Using Microsoft Outlook • Email Management Skills • Email Etiquette That Matters • Reducing the Clutter in Your Office
• How to Have Effective Meetings • Getting It Done While Getting Along • Less Stress and More Energy in Your Day • Reducing Your Mental Clutter • Overcoming Information Overload
There are several ways Kimberly can help you help your team: • • •
Conference and event speaking On-Site hosted workshops On-Demand tele-classes and webinars
• • • •
Team coaching calls Content for your newsletters Productivity assessments Volume pricing on book orders
Kimberly is a Board Certified Professional Organizer, Certified Microsoft Outlook Specialist, Certified Time Management Coach and V.P. of the National Speakers Association, TN Chapter.
EVERYONE Should Read This Book!
It’s all about time. CONNECTIONS
WHAT NOT TO DO AT THE OFFICE – 44 Annoying, Time-Wasting and Unproductive Habits in the Workplace
Superb meetings. They happen here.
Imagine the perfect meeting. A meeting where everything runs smoothly from start to finish. Where smiles are the norm and praises are handed your way, one after another. Where a world at play is right here waiting for you. Where evenings are spent conquering the blackjack tables and victory is celebrated with a cocktail in hand. Welcome to Gold Strike. It all happens here. Contact Kim Jordan Sides at 1.866.607.3444 or firstname.lastname@example.org to book your convention experience today.
goldstrike.com * 1.888.24K.PLAY *
©2009 MGM MIRAGE™ All rights reserved. Gambling problem? Call 1.888.777.9696.
BS-6517 Nov Meetings Ads_8.5x11.125.indd 1
10/30/09 2:44 PM
Living Longer, Healthier Lifestyles is an Initiative Promoted by Lt. Governor Phil Bryant and Other State Leaders
ith a vision to help create a healthier future for Mississippians, Lt. Governor Phil Bryant, along with other state leaders, launched a new program today that challenges people to improve cardiovascular health.
Mississippi is one of 15 states using this online, interactive program that allows people to plan, track and gain rewards from new nutrition and fitness choices. The Lieutenant Governors’ Challenge includes a 12-week program where participants can earn points by doing everyday activities like walking or housework. Each person who meets the point goals receives a medal. Signing up is easy and completely free of charge. To visit the site, go to: www.ltgovernorschallenge.us. “Nearly one in every three people in the United States has cardiovascular disease,” Bryant said. “More people die each day of heart related disease than die of cancer, HIV/AIDS and accidents combined. Yet many of the greatest cardiovascular risk factors can be controlled by your own personal choices. Today I am issuing a new challenge to the residents of Mississippi. The Lieutenant Governors’ Challenge will help people learn about ways to eat healthier, reduce their risk of cardiovascular disease and assist them in tracking their progress towards better health.” Heart disease is the No. 1 killer of both men and women in America. According to the National Heart, Lung, and Blood Institute, heart disease risk is lowered by as much as 82 percent simply by adopting sensible health habits. According to the Centers for Disease Control and Prevention, Mississippi has the highest obesity rate in the country, now 32.8 percent. In addition, Mississippi ranks first in fatalities from heart disease and stroke. These are real problems that affect our communities and loved ones around us. While the national healthcare debate continues, Mississippians must be ever mindful of the issues we face right here at home and how we can approach healthcare more proactively according to Lt. Governor Bryant. “You can choose healthy habits to help prevent cardiovascular disease: eat a healthy diet, get regular physical activity, and maintain a healthy weight. Your heart is in your hands, and I challenge the citizens of Mississippi to take the Lt. Governors’ Challenge and begin living a healthier, longer life,” stated Bryant. Joining the Lt. Governor were the Mississippi State Medical Association, American College of Cardiology-Mississippi Chapter, Mississippi Diabetes Foundation, Mississippi Department of Health, American Heart Association, and the Institutions of Higher Learning. “Thousands of Mississippians are at an unhealthy weight — this is clearly a major risk factor for heart disease and the cause of high blood pressure and diabetes in most people with these diseases,” said Debbie Minor, Pharm.D. and board member for the American Heart Association’s Greater Southeast Affiliate. The Mississippi Lieutenant Governors’ Challenge is made possible by Lt. Governor Bryant and the National Lieutenant Governors Association (NLGA) (www.nlga.us). This makes Mississippi one of fifteen states which will be rolling out the program with the National Lt. Governors Association.
MSAE Welcomes New Associate Members
Narissa Behrens Residence Inn by Marriott 14100 Airport Road Gulfport, MS 39503 228-867-1722 228-867-1723 Narissa.Behrens@marriott.com Jo Ann Brumfield Natchez Eola Hotel 110 N. Pearl St. Natchez, MS 39120 601-445-6000 601-445-0561 email@example.com
Jerry Buzzard Director of Sales Mobile Bay Convention & Visitors Bureau One South Water St. Mobile, AL 36602 251-208-2021 firstname.lastname@example.org
Angela Singleton Natchez Eola Hotel 110 N. Pearl St. Natchez, MS 39120 601-445-6000 601-445-0561 email@example.com
Deborah Cosey Natchez Manor B & B 600 Franklin St. Natchez, MS 39120 601-442-4441 601-445-9701 firstname.lastname@example.org
MSAE 2010 Calendar of Events Board of Director Meetings 10:00 a.m. prior to Lunch & Learn Lunch & Learn Series: 11:45 a.m. January 20
Capital Club, Jackson
Capital Club, Jackson
Capital Club, Jackson
Capital Club, Jackson
September 15 Capital Club, Jackson November 17
Tuesday’s Cocktails & Conversations Tuesday prior to Lunch & Learn 5:00 – 7:00 p.m. Lobby of Jackson Hilton Fitzgerald’s Mid-Year Conference: March 28-30 Natchez, MS 2010 Joint Conference: September 19-21 Mobile Bay Conference Center Holiday Reception: Dec. 15, 2010 Location TBA
Capital Club, Jackson
Happy Holidays from your Executive Director and your 2009 Board of Directors: Mike Pepper Layne Bruce Bob Wilson Shari Veazey Linda Ross Aldy Danny Gleason Peggy Lockert Marty Milstead Penny Quave Mary Sampson Kim Terrell Kim Thomas
River Room Conference
Greater Jackson’s Most Dististinctive Gathering Place.
• 3,000 Sq. Ft. Of Flexible Meeting Space Accommodating Up To 250 Guests • Wide Variety Of Food & Beverage Services For All Budgets • Complimentary Planning Consultations
100 RIDGE WAY, FLOWOOD, MS • RIVERROOMFLOWOOD.COM
Index of Advertisers CRI
Inside Front Cover
Creative Marketing Concepts
Emerald Coast Convention Center
Hilton Garden Inn Hollywood Casino Jackson Convention Complex Kimberly Medlock Natchez CVB
Back Cover 18 6 23 3
River Room Conference Center
Tunica Convention & Visitors Bureau
YOUR meeting is a big deal tO Us,
nO matteR the size.
Our facilities are fully equipped with the latest technology including complimentary Wi-Fi throughtout the hotel and in all meeting rooms and a 24-hour Business Center; plus guest rooms that help your attendees stay productive while away from the office. And, when your meeting happens here, it’s most likely the only one happening here. So we can be more focused on your meeting, and you can stay focused on it’s success. When tomorrow’s a big day, stay HGI tonight. Located three blocks from the Jackson Convention Complex.
235 W. Capitol St. Jackson, MS 39201 601-353-5464
Reservations: jacksondowntown.hgi.com • 1-877-STAY-HGI ©2009 Hilton Worldwide