Finances: What will associations face in 2013?
In 2013 association CEOs will face new insurance and financial service issues driven by board members. What are the 2013 insurance and financial service issues for CEOs?
With all the focus on how the federal government works, CEOs are challenged with new questions by their own boards. All board members are subject to increased financial responsibility within their own employer’s org- anization operations. The impact of Dodd-Frank, Wall Street reforms, and the Consumer Protection Act are raising fiduciary concerns for all association board members and many are expressing financial questions traditionally handled by the CEO and association staff.
One example of current federal law impacting associations is the Patient Protection and Affordable Care Act. The major roll-out of PPACA will begin in 2014, so strategic planning must take place over the next 10 months. This law will change all association staff benefit plans. New legal and human resource changes will be implemented, insurance and retirement advice will be adjusted, and higher financial charges will impact tight budgetary plans.
For associations, what options do we have when paying for our overall staff benefits? What will be the estimated budget cost for the next two years? What is the impact for our association members? What should we do to help our member understand PPACA’s benefits going forward?
Other board members want to know what the total cost is for association business insurance. Are we covered and do we need all of this insurance? As a board member, am I covered for my decisions and advice? When traveling to the Annual Convention, do I need insurance for the rental car? Recently we published updated Best Practices Guidelines. Are we covered in case of a suit for those guidelines? With all of these new questions from our boards, how can we get teams quickly updated? Within each association team, outside professionals stand ready to assist in all of these areas. By reaching out to attorneys, auditors, bank investment managers, insurance agents, and financial advisers, solutions and assistance are available for the issues facing CEOs.
Each association’s outside professional staff should provide an audit of their area of expertise highlighting the most important questions association boards may be asking. If these are new concerns to be addressed, they should also be prioritized for future management planning.
Haney is with P. Allen Haney Co. He is a past TRENDS Association Vendor of the Year. Contact him at 301-654-2085 or ahaney@pallenhaneycompany.com.
