Districts and Regions


This page will walk you through various resources for supporting and encouraging districts. The main topics of this page include:

Main Page
  • District Leadership Recruitment and Support
  • District and Region Structure Options
  • Creating and Maintaining Districts
  • District Restructuring
Side Bar
  • Agreements - required to be submitted to the Academy annually with the principles of affiliation
  • Templates for Bylaws (external districts) and Guiding Principles (internal districts)
  • District Benefits
  • District Dues
  • Financial and Legal Information
  • Dissolving a District

District Leadership Recruitment and Support

Leader Recruitment and Promotion 

  • Affiliate and district leaders should establish their relationship to determine who will handle leader recruitment to fill elected and appointed positions. This may vary depending on internal and external district status.
  • Review bylaws/guiding principles annually to determine if the requirements and job duties for each position are appropriate or whether some positions can be combined. Update positions descriptions annually as needed.
  • Prepare member messaging to communicate information about available positions.
  • Engage members in your district’s projects and events. The more involved members are early in their membership, the more engaged they will become throughout their care
  • Host a “Meet the Board” social hour before or after a board meeting Invite members to attend and learn more about the positions and the board members. 
  • Have current/past board members write testimonials on how being involved has helped them personally and professional Include these in recruitment materials etc.
  • Give potential candidates the opportunity to be involved. Ask them to attend a meeting or program on behalf of the board, write an article for the newsletter, provide an educational workshop at your next meeting, write a letter of support to a possible sponsor, etc.
  • Be hones Potential board members like to know the level of commitment that they need before they agree to a leadership role. Explain duties, time commitments, and levels of support they have as Board members.

Annual Election 

  • Internal district leaders are selected based on definitions in the affiliate bylaws and district guiding principles. Bylaws and guiding principles should define if district leaders are selected during the affiliate election or in a separate election and who votes for district leaders (all affiliate members or only district members?). 
  • External district leaders are selected based on definitions in the district bylaws.
  • Bylaws will dictate district positions and term limits.

Overcoming Volunteer Recruitment Challenges 

  • Form a group or assign a committee to address the issue and report back to the board.
  • Hold a round table discussion with current board of their experience and recommendations.
  • Survey the membership on both perceptions of the roles and barriers to volunteering. Determine why individuals are motivated to be a part of the district.
  • Have an open meeting for non-board members to discuss the lack of volunteers and potential solutions.
  • Invite past leaders to share their experiences, frustrations and advantages of volunteering.
  • Meet with the nominating committee and discuss what tactics they are using.

Orientation for District Leaders
 

An affiliate orientation for the district leadership has many potential benefits. It can provide education, set expectations, and facilitate relationships between districts and with the affiliate.  Affiliate and district leaders should establish their relationship on orienting and training new leaders. This may vary depending on internal and external district status. 

Where to meet? 

  • Consider the pros and cons of meeting live verses a virtual meeting.
  • Determine who is financially responsible for the meeting. Will the affiliate or district pay for part or all of the meeting? Will the affiliate or district be responsible for paying for mileage/travel and the affiliate food and lodging?
  • If in person, find a central location for volunteers from all over the state to access.

Who to invite? 

  • Decide who should attend from the district and affiliate.
  • Decide the goals of the meeting to determine topics and identify speakers
  • Decide what district volunteers need the information being presented in performing their functions

Meeting Specifics 

  • Share governing documents – mission/vision, bylaws, position description, policies, and strategic plan.
  • What information do the districts need to know?
  • Topics may include: Policy/procedures, tax/financial obligations, licensure laws, public policy, public relations, district obligations to the affiliate, what the affiliate can do for the district, principles of affiliation, Academy resources, etc.
  • Share a roster of affiliate and district leaders
  • Who will present? Are there experts on the topics? Will it only be representatives of the affiliate, can outside members present and can the district representatives present?
  • Consider having a break out time for each position to meet with their peers at the affiliate and district level, encourage cooperation.
  • Create a “take away”. What needs to be handed to them? Copies of policies, handouts, slides.

After initial orientation 

  • Encourage cooperation amongst leaders.
  • Create/Update written transition or leadership resources
  • Can some leaders be defined and noted as experts in certain areas, such as bylaws, taxes, websites?
  • Confirm the obligations between the district and affiliate are met.
  • Being a volunteer leader can be challenging. Make sure that volunteer leaders celebrate successes.

Succession Planning 

  • Outgoing leaders should be involved in recruiting and selecting their replacement.
  • A written plan should be in place that defines expectations, timelines, and resources.

District and Region Options

There are three different options for structuring regional organization: internal districts, external districts, and regions. Below is an outline of the three different options. You can also view a webinar on the topic by clicking here.

Option 1 – External Districts 

  • Each district would be a separate legal entity:
    • Register with the Secretary of State as a 503(c)6 corporation (professional association)
    • File annual reports with the Secretary of State
    • Maintain an active Registered Agent with the Secretary of State – must be someone who lives in the state and is active with the organization
    • Obtain an Employer Identification Number (EIN) from the IRS
    • File taxes yearly (990 N postcard)
    • Maintain bylaws and policies and procedures
    • Maintain financial records with a separate business banking account
    • Sign an annual agreement with the affiliate where you submit proof of good standing with the state, taxes filed, bylaws, and financial health
  • Each district would be solely responsible for elections, maintaining operations, all finances, member management and verification of Academy membership, which would be reviewed by the affiliate on a regular basis
  • Provides the largest autonomy for the districts, but also the most responsibility
  • If the district becomes inactive, they would have to legally dissolve due to not being able to maintain legal responsibilities with the state and the IRS
Option 2 – Internal Districts 
  • Districts would be considered part of the affiliate for all legal purposes
  • Affiliate would take over all financial and legal responsibilities:
    • Dues collection
    • Paying expenses
    • Holding reserves
    • Filing taxes
    • Approving final budget presented by district leaders
    • Contract negotiation (for services and sponsorship)
    • Reimbursement
  • Each district would have an Executive Committee with elected officials to represent the district
  • Each district would have to maintain Guiding Principles instead of bylaws, and provide representation to the affiliate board
  • Affiliate would review all projects/programs for approval
  • Districts would sign an agreement with the state each year to maintain as an active district, but no legal action would need to be taken if a district becomes inactive
  • Would require a lot of set up  at the state level to be able to support districts fully – input on best way to do this that works for all districts

Option 3 – Regions 

  • Allows for greatest flexibility:
    • No agreements necessary
    • Each region led by an appointed committee
    • Regions can be adjusted by vote of the affiliate board based on member involvement to accommodate any regions who may be inactive
  • All financial and program decisions would be submitted to and approved by the affiliate board as with internal districts
  • Generally requires less volunteers to run than districts as most functions are supported at a state level
  • Eliminates dues for districts – funding comes from the state affiliate. Programs are funded through general funds, sponsorship, or a small fee for the event/offering

Feel free to reach out to states who have successfully transitioned for their input. States that have moved to regions are

  • Missouri
  • Wisconsin
  • Texas
  • North Carolina
  • Georgia
  • Minnesota

You can reach out to affiliates via the Network page 

Things your organization will need to decide how to do: 

  • Communication – centralized through the affiliate, or allow regions to have their own (our recommendation is to centralize through the affiliate to ensure consistency and inclusion to all members)
  • Finances – how will you transition the funds from districts to the affiliate? 
    • If your districts will transition to regions, set up an account for that district to deposit the funds into under the affiliate account.
    • If you are changing to a different number of regions than you have districts you will have to determine where the money from each district will be deposited. Note that you can split the money from one district to multiple regions if the districts overlaps them. Ensure you work with district and new region volunteers to finalize the process prior to your board vote.  
    • As you go through the year, be sure you are attributing deposits and debits correctly for each region so the funds stay accurate.
  • Budget – will you have set fees for events that regions must adhere to, or allow them to set their own?
    • Be sure that they submit budget requests just as any other committee would and include in your annual budget.
    • All revenue collection (events, sponsors, etc.) and bill payment must be done through the affiliate – clarify that process
    • All contracts and agreements must be signed by the affiliate – region leaders cannot sign
    • Be sure you are accurately tracking finances for each region (could be separate bank accounts or via accounting software where each region is a separate project/account line).
  • Structure – define what the minimum organizational structure for a region is and how they add additional volunteers if necessary. Do you want a minimum amount of activity/events?

Creating Districts

Affiliates may create district dietetic associations that are geographically based. All members of the districts must also be members of the affiliate. The Academy of Nutrition and Dietetics has no direct responsibility for district associations. 

The affiliate board of directors defines the district association’s boundaries and determines the organization and maintenance criteria. The district structure and governing documents should be compatible with the affiliate’s structure and bylaws.  

Districts may have a variety of functions, such as, but not limited to; creating networking opportunities, tracking technical resources, leadership development and/or providing continuing professional education. 

The responsibility of the affiliate is to monitor and/or establish: 

  • District incorporation status, either legally part of the affiliate or separately incorporated with the state 
  • District’s federal tax-exempt filing status; completion of tax filing 
  • District dues collection and tax filing  
  • District accounting procedures 
  • Affiliate expense allocation to fund activities of the district 
  • Association Comprehensive Liability Insurance through the Academy  
  • District reporting to the affiliate association 

Responsibilities differ based on if the district is internal or external. Find details in the table below.

Affiliates are required to sign an annual agreement between the affiliate and district and submit the agreements to the Academy during the Principles of Affiliation submission which is due August 31st each year. These agreements should be in place prior to the start of the affiliate’s fiscal year. 

Two templates are available in the sidebar of this page. As a part of this agreement, external districts are required to submit: 

  • Certificate of Good Standing from an agency of the state in which district is incorporated or a copy of the most recently filed annual report with the state of incorporation 
  • A copy of federal (IRS form) and state income tax filings for affiliate and foundation (if applicable); or if district has less than $50,000 in gross revenue, a copy of the 990N Postcard that district is required to file with the IRS.   
  • A copy of the current district bylaws. 
  • An annual report summarizing the districts activities and finances. 

Affiliates may consider an additional written policy with each district defining the items addressed below.

Any district that has a formal, signed relationship with the affiliate (internal and external) will have insurance coverage under the policy offered to affiliates through the Academy as long as they fulfill the legal and affiliate requirements.  

Forming a District 

Step 1: Determine Interest 

  1. Determine the district area – this most oftentimes is completed by zip code or county. 
  2. Each affiliate should investigate establishing a minimum number of individuals required to start a district. It is recommended that this is capture in a written policy. 
  3. Affiliates should consult with their accountant or tax professional to review both federal and state requirements prior to making a recommendation regarding the district formation. 
  4. The potential district leaders should survey the members in the proposed area to determine interest in district formation, including the purpose and benefits of forming a new district. 

Step 2: District Formation 
If the board and district leaders feel a new district formation would benefit the affiliate members, the next steps are to develop: 

  • Governance 
    • Determine if the district will be separately incorporated or incorporated through the affiliate. If a district is incorporated through the affiliate, the affiliate will be liable for district activities and leaders. If the district is separately incorporated, they will be held solely responsible for their leaders, finances, and for tax filings. 
    • Create bylaws if separately incorporated as an external district. Districts incorporated within an affiliate as an internal district are governed by the affiliate’s bylaws but should create guiding principles. 
    • District will need to establish policies and procedures.
  • Dues 
    • Determine whether dues will be collected. When a relationship is formed, individuals who qualify for Academy membership must be members of the Academy to become members of the district. This applies to both internal and external districts. 
    • If dues will be collected, how, by whom and how much. 
    • Determine how Academy and affiliate membership will be verified. Each affiliate has access to the Academy’s DMIS database which includes all members of the affiliate. Affiliates can share log in information with district leaders, provide a list of members on a regular basis, or have districts submit members to the affiliate for verification.
  • Determine the affiliate’s requirements of the district, such as: 
    • Annual report 
    • Position on the affiliate board of directors 
    • Quarterly reports 
    • Signing a district agreement (templates for internal and external organizations are available through the Academy) 
    • Participating on leadership calls with affiliate 
    • Co-planning events with the district leaders affiliate-level counterparts (e.g., public policy coordinator and district-level policy position). 
    • Consider including district leaders in affiliate strategic planning workshops, retreats, etc. 
  • Determine Financial Structure 
    • If there is a financial need, establish a bank account for the district.  If incorporated within the affiliate, may need to work with the board of directors and staff to establish banking procedures. 
    • Consider various types of financial support to the district if internally incorporated (annual district rebates, speaker grants, etc.). If the affiliate rebates the districts, tie it to achievement of measurable standards or other criteria. 
  • Leadership (Refer to established positions in the bylaws or guiding principles) 
    • Identify needed positions 
    • Identify support available to district leaders from the Academy and affiliate levels
  • Develop position descriptions. 
    • Recruit and train leaders 
    • Ensure position descriptions are updated regularly 
  • Develop member benefits. 
    • What unique benefits will district membership have?  Networking, CPE’s, newsletters, etc. See more information on this in below sections.

     

    Internal District 

    (Incorporated through the affiliate) 

    External District 

    (Incorporated on its own) 

    Principles of District Cooperation Agreement 

    Required. 

    Required. 

    Academy Membership  

    Must be an Academy member. 

    Must be an Academy member. 

    Membership Dues 

    District may collect dues. 

    District may collect dues. 

    Access to Affiliate member information (DMIS) 

    At discretion of the affiliate 

    At discretion of the affiliate 

    Legal Status 

    Part of the affiliate. 

    District must register/maintain non-for-profit corporate with Secretary of State. 

    State and Federal Tax Filing 

     

    Filed by the affiliate. 

    Filed by the district. 

    Bylaws 

    Defined by affiliate bylaws. 

    Defined by district bylaws. 

    Financial Liability 

    Responsibility is with the affiliate. 

    Responsibility is with the district. 

    Budget/Monthly Financials 

    Managed by the affiliate. 

    Managed by the district. 

    Insurance 

    Included through Academy coverage 

    Included through Academy coverage 

    Registered Agent 

    Covered by the affiliate. 

    District must appoint representation. 


    Step 3: Launching the District 

    Identify ways the affiliate will promote the district formation and market the opportunity to members. 

    • Email communications to individuals in district’s geographic area. 
    • Including information on the affiliate website. 
    • Promote the district in the affiliate newsletter. 
    • Form a dedicated electronic mailing list for the district. 
    • Facebook/social media pages 

    Maintaining a District 

    Step 1: Maintain Expectations 
    Upon creation of the district, the district and affiliate should have determined the requirements of the district (as mentioned above).  On an annual basis, the district and affiliate should ensure requirements have been met and review requirements for the upcoming year.  

    • The expectation should be consistent for all districts within the affiliate and should be reasonable for all to comply. 
    • District should know the responsibilities that the leaders have (for example, creating of bylaws, filing taxes, electing leaders, etc.) 
    • Review the affiliate/district relationship to determine the benefits available to the district, and the required annual state and federal tax filings.   
    • Timelines/calendars should be created and maintained to ensure requirements are being met. 

    Step 2: Communication 
    Communication between the affiliate leaders and district leaders is essential. Affiliate leadership should collaborate with the district leadership to define the relationship and set expectations. This defined relationship will ensure a minimum amount of communication and aid in growing the relationship in a supportive and mutually beneficial manner. 

    • New district leaders need to be oriented to their roles. Determine if district leaders will orient leaders on their own, or if the affiliate leaders should be involved. 
    • Provide leadership and officer training to district board members as way to groom for additional volunteer positions. 
    • Maintain a relationship between the affiliate board and the district leaders. Invite district leaders to be members of the board, hold them accountable for specific tasks tied to the strategic plan, and actively engage them. Consider requiring quarterly reports from districts.  
    • Affiliate leaders should check-in often with district leaders (phones calls or emails). Consider quarterly leadership calls with district leaders.   
    • Determine if the affiliate and district will share in communication announcements, events, and benefits. 
    • Educate the districts on benefits available to them, through the Academy and the affiliate. Inform districts of their responsibilities in order to maintain those benefits.  
    • Collaborate with districts on membership recruitment/retention activities. 

    Step 3: Collect Feedback 

    • Districts should perform membership satisfaction surveys every 1-3 years with members. 
    • District leaders should maintain a pulse on their community and communicate to the affiliate board regarding any changes in needs. 
    • Review the arrangement yearly to determine if it continues to work well for both the affiliate and district. Identify any adjustments that should be made.   

    Working with a Struggling District

    Step 1: Analyze Trends 
    Affiliate leaders should work with current district leaders to determine membership and leader trends. This is an important step to determine potential causes. Trends such as: 

    • District membership numbers year over year. 
    • Number of potential members in district area (compared to current membership). 
    • Member trends such as renewals and retention numbers. 
    • District financials year over year. 
    • Number of leadership positions filled and number of individuals who run for positions year over year. 
    • Leader and member testimonies. 

    If a district is struggling with membership, attendance, or financials, determine if the district has a declining trend in the areas mention above. The district may need to change its structure or wait 1-2 years to see if the membership and leadership stabilizes.   

    Step 2: Discussion 
    The affiliate board and district leaders should discuss and select one of the available courses of action. 

    Option One: Revive the district 

    • A communications and activity plan should be developed so that district leaders can communicate with potential and current members to revive interest in the district.  
    • A review of the leadership structure and commitments should be completed to avoid leader burnout.  
    • A check-in should be scheduled quarterly to gauge progress and change the course of action, if needed. 

    Option Two: Reorganize or combine districts 

    • The affiliate and district leaders should investigate the surrounding district’s activities. 
    • Review of districts’ programs of work to determine if the districts share common goals.  
    • Conversations should open between the struggling district, identified district, and affiliate leaders.  
    • Discussions should cover the steps identified in forming a new district. If all parties feel a reorganization or combination could benefit all involved and members agree this should occur, a project plan created for district merging. 
    • If a reorganization happens be sure to update all filings with the state and federal government to reflect name changes or dissolution. 

    Option Three: Dissolve the district 

    • The affiliate and current district leaders should use this as a last course of action. If pursued, the decision makers must ensure all bylaws of the affiliate and district are complied with, and legal documentation is filed for separately incorporated districts and that the remaining funds are handled according to state non-profit law. 


    Step 3: Member Input
     
    Once a course of action is selected, the district should solicit feedback from its members over the course of 2-3 months. During the discussions, it’s important to outline the trends and challenges affecting the decision and how the proposed change would impact the member. 

    • If member consensus is in favor of the course of action, proceed with the plan. 
    • If member consensus is against the course of action, request these individuals to propose solutions to the challenges identified, such as finding new leaders. When this occurs, re-do step two to ensure the district can be revived. 


    Step 4: Notifications
     
    Once a course of action has been finalized, the following parties need to be notified: 

    • Membership 
    • Affiliate leadership 
    • Independent contractors 
    • The Academy Affiliate Relations team 
    • Secretary of State (if applicable) 
    • IRS (if applicable) 

    District Agreements


    Every district is required to sign an agreement with the affiliate annually. These agreements must be submitted with the affiliate's principles of affiliation agreement which is due to the Academy August 31st each year.

    District Governing Documents

    Districts must have governing documents just as any non-profit organization would. What kind depends on if they are internal or external. Note that regions are considered committees and therefore do not have separate governing documents.

    External districts should have their own bylaws and policies and procedures since they are separate legal organizations. Utilize the templates for affiliates linked below.
    Internal districts should have their own guiding principles based on the affiliate's bylaws and adhere to the affiliate's policies and procedures as internal groups under the affiliate's legal status.

    District Benefits

    Each district has a unique set of member benefits based on their member’s interests, skills and capabilities. It is important to regularly review these benefits to ensure they meet the changing needs and desires of the membership as well as attract new members. 

    Determining Resources 

    • Review budget. Internal districts should work with affiliate leaders. External districts should work with district leaders.
    • Review mission/vision, strategic plan, and bylaws.
    • Survey membership for special knowledge and skills that can be leveraged.
    • Gather key members from all career demographics for open discussion.
    • Review what is already available from the Academy and the affiliate.
    • Create a list of possible sponsors or partnering companies that would have potential member benefits.
    • Review benefits that other districts offer (inside and outside of the state).

    Determining Benefits and Member Needs 

    • Survey membership on what benefits they value, which current benefits are used and types of benefits they would like to see created.
    • Reference the membership satisfaction survey in the “Membership, Recruitment, Retention” section of the Affiliate website for potential survey questions.
    • Review what benefits the members have used in the past using data collected through attendance, opening of emails/eblasts, responses, website hits.
    • Invite a focus group of members to brainstorm possible member benefits. Are there benefits that are specific to your geographic location that would be of interest? Encourage your focus group to think broadly.
    • Work closely with the affiliate benefits to prevent duplication of work.

    Implement Benefits 

    • Review the cost and resources needed to create the most desired member benefits.
    • If working with a sponsor or partnering company, create a contract or Letter of Agreement so that both parties’ involvement and expectations are clearly defined.
    • Create a plan on formulating the benefit, detailing a timeline and who is responsible.
    • Advertise the new benefit to district membership.
    • Market the benefit to the affiliate and potential new members.
    • Celebrate the new benefit, consider a kick-off party, eblast notification, or formal “Thank you” to those involved in its creation.
    • If starting a new member benefit, monitor its usage and troubleshoot any issues early on. Talk with members who are using the benefit and encourage them to share their successes with other members.

    District Dues Structure

    There are many factors to consider when determining a dues structure at the district level. Prior to implementing dues or changing the amount, an assessment should be done to determine how the dues will be spent and how much is appropriate. 

    Steps to determine dues: 

    1. Determine the expectations of the members (i.e. educational seminars, networking events, scholarships, stipends, Public Policy Workshop, etc.) 
    2. Determine the cost of meeting the expectations (i.e. speaker stipends, cost of food/beverage, room rental, etc.) 
    3. Determine the operating budget (possibly including the cost of supporting the board to attend the affiliate annual meetings, marketing, eblast subscriptions, etc.) 
    4. Determine the amount of sponsorship anticipated. 
    5. Determine the amount of reserves on hand (recommend to have 100% of the operating budget as reserves). 

    Considerations: 

    1. Does the district need to make any capital/large purchases? 
    2. Review the reserves, does the district need to spend down, increase, or stay the same? 
    3. Have any of the services offered outlived their usefulness? 
    4. Will the district be adding any services? 
    5. Review all contracts to determine if they are still necessary and if the fees will stay the same. 
    6. Will all members pay the same amount (students, active members and retirees)?  
    7. Are there other districts in the state? How do the rates compare? 

    Discussion: 

    1. The above should be carefully considered and determined by the financial committee and/or board. 
    2. The considerations should be presented and discussed with the board. 
    3. The board may consider inviting member feedback or conducting a member survey. 
    4. Based on discussion present a recommendation for dues change to the board for a  vote. 

    Implementation: 

    1. Communicate the new dues with the affiliate leadership 
    2. It is recommended to implement at the start of the membership year 
    3. Remember to update district membership applications, website, etc. 
    4. Communication should go out to all members at least 1 month prior 
    5. It should be communicated in all typical methods of communication to the membership (eblast, postal mail, website, during meetings) 
    6. Rationale for the change (whether increased, special rates or decreased) should be provided to the membership. 

    Financial and Legal Requirements

    As part of your agreement with the affiliate, the district may be required to submit financial reports monthly or quarterly to the affiliate’s treasurer.  Review the agreement and guidelines from the affiliate. 

    Reporting Requirements  

    • District shall provide Affiliate with regular communications and reports, including financial information, as requested by Affiliate.
    • All districts should submit the Principles of District Cooperation signed by the President of District by June

    Additional Reporting Requirements for External Districts. 

    • District shall submit to Affiliate the following information and reports by August 31 of each year: 
    • Certificate of Good Standing from an agency of the state in which District is organized,  to the effect that the District has complied with all legal requirements to operate within the state or appropriate jurisdiction or a copy of the most recently filed annual report with the state of incorporation
    • A copy of federal (IRS form) and state income tax filings for affiliate and foundation (if applicable); or if District has less than $50,000 in gross revenue, a copy of the report that District is required to file with the IRS.  
    • A copy of the current district bylaws.
    • An annual report summarizing the districts activities and finances.

    Reference additional financial and legal information in the Operations and Finance section of the Affiliate website.   


    Understanding Affiliate/District Relationship

    The Academy recommends an affiliate/district relationship in which the district operates as an official part of the affiliate and not as a separately incorporated entity. This arrangement is not required but does allow for the least amount of work on behalf of both parties with maximum benefits.  

    Use these questions as a guide to determine the relationship. 

    1. Is the signed relationship agreement between the district and the affiliate the external form? 
    2. Is the district separately incorporated with the secretary of state (or equivalent governing entity for DC and Puerto Rico)? 
    3. Is the district tax exempt?   
    4. If the district leaders do not know its incorporation or tax-exempt status, there are several resources that may help: 
      1. Check the affiliate and district records 
      2. Check with the IRS 
    5. Once this information is confirmed, ensure the district saves the information for future reference. 

        A true external district will answer “yes” to all three of the above questions. If your district has a mix of yes and no, the district should work with the affiliate to determine which is the best structure for them. 

        If the district opts to become an internal district, be sure to file the correct paperwork with the state and federal agencies to dissolve the district and sign an internal agreement. Be sure all internal district policies are communicated and adhered to. 

        If the district opts to become an external district, be sure to file paperwork with the state and/or IRS depending on current filings to ensure proper legal standing at both the state and federal level. Ensure the external district agreement is signed. Be sure all external district policies are communicated and adhered to.  


        Dissolving a District

        Internal and external districts must be in compliance with the affiliate agreement and procedures and the state department. In the event of non-compliance, the following procedure will be initiated. 

        Procedure 

        1. Internal districts adhere to the affiliate bylaws while external districts have their own bylaws. Before discussing a dissolution, check the appropriate bylaws to ensure compliance with verbiage about dissolution.
        2. The affiliate or district leaders must notify the affiliate board and the district board of the areas of non-compliance via written communication.
        3. The district leaders develop a plan of action to correct the non-compliance, submitting it to the affiliate board for review until a final course of action is establish.
        4. A timeline should be established to evaluate the progress or the plan of action to correct the non-compliance. If the district has not complied with the corrective plan of action, the affiliate board will be notified.
        5. Upon notification, the affiliate board will determine appropriate action which may include reorganization or dissolution of the district.  
        6. The district may be instructed by the affiliate board to contact the district general membership to ascertain whether reorganization or dissolution is desired. 
        7. If the affiliate and district leaders opt for dissolution (no option of reorganization offered), or if the majority of district members who submit a completed ballot vote for dissolution, the district membership is informed in writing. 
        8. Legal action is required for external districts to terminate corporation status. Check with the State Department and IRS for compliance.
        9. Manage remaining district funds according to state non-profit law and bylaws. Often an external districts bylaws were state that funds will be donation. Internal districts are legally a part of the affiliate already so the affiliate already legally owns the funds.
        10. Close down any pertinent accounts – website, bank accounts, email accounts, etc. Make sure any payments that may have been set to auto renew or closed. Make sure any contracted obligations have been fulfilled.
        11. Develop a communication plan to notify members, vendors, contractors and any pertinent parties.

        Notifications 
        Once a course of action has been finalized, the following parties need to be notified: 

        • Membership
        • Affiliate leadership
        • Independent contractors
        • The Academy Affiliate Relations
        • Secretary of State (if applicable)

         Note 

        • Depending on when the official dissolution occurs, the district may need to file taxes one last time even after dissolving.
        • Keep the Academy informed of a decision to dissolve or restructure districts.