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'How to' Guide to Neighborhood Associations - Part III

Maintaining Your Neighborhood Association

Committee Work

Organizations accomplish their objectives through the dedicated work of committees. The tasks and the types of committees depend on the overall purpose and structure of your neighborhood association. The types of committees can generally be divided into two major categories:

Internal Affairs

Neighborhood Affairs

Tip: To maintain active, productive, motivated members on the committees

You'll be planning a lot of great programs in your neighborhood - don't keep them a secret. Spread the words. This will help others in the neighborhood join in the effort and take part in making a difference Here are a few ways to get the word out:

When such problems occur, encourage open, respectful discussion. Let the members try to identify the obstacles in their own way.

Understanding and Managing Conflict:

One of the primary benefits of forming a neighborhood association is the improvement in communications between neighbors. However, there will be times, in spite of our best efforts, when communication will break down, and a conflict will develop.

A simple unresolved conflict can escalate and cause serious damage to relationships and to a neighborhood association, so it is very important that neighbors do their best to handle these situations constructively.

Remember that conflict in and of itself is not bad and can lead to the discovery of valuable new insights.

One of the biggest obstacles to managing conflict well is that most of us find conflict to be very uncomfortable. As a result, we either try to avoid dealing with it, or we approach the conflict as if we were going to battle, determined to "win."

There is, however, another approach to this common dilemma, one that accepts conflict as a normal aspect of any relationship or organization. Seen in this light, one can approach conflict resolution as an opportunity for growth, change and new understandings.

Consider using the following tips the next time you are faced with the challenge of effectively resolving conflict.

In some circumstances, you may also wish to seek the assistance of a trained mediator. A mediator is a neutral third party who will listen to the issues and assist the neighbors in conflict to create their own mutually acceptable solution to the problem.

Obtain a Tax Identification Number

A tax identification number is a federal tax number that is filed with the Internal Revenue Service. The number enables the bank to report the earnings of the association's account to the IRS for tax filing purposes. You can get an ID number from the IRS.

If you don't have a tax ID number or feel that it is not necessary, you can open an account with a member's personal Social Security number. Often the secretary will use his/her number. The person whose number is being used is liable for paying taxes on the interest income reported by the bank to the IRS. This means that the money in the account is considered the personal money of the ID holder and taxes must be paid as if it is additional income. Also, if there is ever a lien against the person's assets, those monies are considered personal property and can be assessed.

Obtain Information on Fees and Charges
Over the course of time, every neighborhood association accumulates money for one reason or another. The association needs a management system in place for dealing with these funds. What kind of bank account should be opened and how do you go about opening an account for your organization? Either a person or a corporation can open a bank account. If your association is incorporated and you also have nonprofit status, you may be eligible to receive free banking privileges at some banks.

Tip: Run your neighborhood association like a business; open a bank account.

Research the fees and charges assessed at different banks and credit unions. Some have better programs than others. Banks may waive service charges to organizations that provide necessary public service. The decision to waive the charge is at the discretion of the individual bank. If you are not a nonprofit organization and are eligible for a nonprofit account, there may be no charge for the service the bank is offering. You, however, must take the type of account offered by the bank.

If you are a nonprofit corporation, you must bring a copy of the Articles of Incorporation stamped, "Filed" by the Division of Corporations. If you are not a corporation, bring a copy of your bylaws or minutes of your first meeting. You must also state the names and titles of people who are authorized to conduct business for the organization. Personal identification, such as a driver's license, credit cards or a passport, is required to open any type of account.

The secretary of your neighborhood association along with anyone else who will be signing on the account must sign signature cards. You will then also need a director's signature (an officer of the corporation or a designated director).

Tip: You may wish to limit the number of signatures that may appear on the checks for the purpose of accountability.

The bank will provide a card with wording for a resolution authorizing the bank account. The resolution must be adopted by the board of the nonprofit organization or the members of an unincorporated association. If you pay for an account, you can choose any account you would like, depending on your needs.

The different types of accounts available for your association to choose from:

Tip: There are two things to consider when determining the type of bank account for neighborhood association:

Consider whether your association will have enough money to keep a minimum balance in your account or will have to pay service fees, if any.

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