Network Administration

• Identify a state chair or co-chairs.
• Identify one or more presidential sponsors.
• Identify members for a state planning board.
• Establish regular communication with your WNEC liaison. (Contact womensnetwork@acenet.edu to find out how to reach your WNEC liaison.)
• Develop a set of bylaws/policies that addresses membership, organization structure, and succession. Note: Sucession planning tips are included in this toolkit. 
  
• Establish internal and external communication strategies.
• Hold a kick-off event for interested women and to recruit institutional representatives.

Each state network operates as an independent affiliate of the ACE Women’s Network. While ACE provides some level of nonfinancial support to the ACE Women’s Network, each state network must establish its own organization and identity separate from ACE.

Although state laws vary, there are generally three organizational options available:

1. Operate as an unincorporated entity (trust or association), which may offer limited or no protection from liability.
2. Incorporate the organization under state nonprofit corporation guidelines or create another limited liability entity under the relevant state provisions.
3. Operate within the structure of another nonprofit corporation, such as a unit of a college or university, a philanthropic foundation of a college or university, or a women’s leadership program.

Factors to be considered when deciding whether to organize as a nonprofit under state law:

• What kind of limited liability protection is available under state law?
• What is the cost to create and maintain the entity’s status?
• What record keeping is required under state law?
• What operational document is needed (e.g., bylaws)?
• What other documents are needed to comply with state or federal law?
• Will the organization have members or not? Will they be voting members or not? When will the organization have its annual meeting and election of board members and officers?
• Will you file as a tax-exempt organization under federal law as well?
• What are the annual filing requirements to comply with state and federal law?

​By incorporating, the state organization will have to consider start-up efforts and costs; maintaining the continuity of organizational bank accounts; and record-keeping (including careful taking and maintenance of board minutes to reflect all fiduciary decisions). The state organization must have a formal structure that is described in a “forming document,” and its officers have ongoing legal responsibilities. While these obligations are not onerous and may be executed with the assistance of competent staff, they are necessary in order to obtain the benefits of incorporation under state law.

The advantage of operating under the auspices of an existing nonprofit corporation is that the professional staff of the hosting organization can perform most of the administrative tasks, such as maintaining accounts and filing tax reports with state and federal agencies. Some state networks, for example, are hosted by the institution of the presidential sponsor. In such instances, there may be staff support and financial support available for the state network as a result of the affiliation with the presidential sponsor.

Foundations usually charge a fee for such administrative services, but they are generally reasonable for the benefit they provide. The challenges of this arrangement begin with identifying an appropriate umbrella organization. All 501(c)(3) corporations have “forming documents” that state their mission and scope. Many do not permit the support of other organizations. Other challenges include alignment with the mission and focus of the organization, control over use of funds, and continuity of the hosting or sponsoring organization.

Information on how to incorporate a nonprofit corporation or how to create another type of limited liability entity can be obtained from your state’s secretary of state. Most secretary of state offices have helpful websites with instructions and forms. Your organizing documents (e.g., certificate of formation, articles of incorporation, trust document, or articles of association) must contain certain required provisions to comply with state law. Additional requirements may be applicable if the organization plans to apply for federal income tax exemption as discussed below, including a purpose clause and a dissolution clause.

For new state networks, the need to establish a system for managing the funds of the state network is often a triggering point at which the organization needs to decide how to structure its affairs. For an existing state network, the need to change its system for managing its funds is another point at which the organization should revisit the issue of its organizational structure. As discussed above, there are three common options for organizational structure. The system for managing the state network’s funds depends on which option is selected.

If the state network will operate as an independent organization under option one or two above, the state network will need to open a checking account at a banking institution. The banking institution will require the presentation of a Social Security number or an employer identification number in order to open a bank account. Individuals should not open the state network’s bank account using their personal Social Security number. See instructions on obtaining an employer identification number for an organization within this toolkit.

If the state network operates within the structure of another organization, such as a unit or program of an institution of higher education or community foundation, as discussed in option three above, the funding system will depend on the hosting organization. The state network will need to discuss with the hosting organization the procedure for making deposits, paying expenses, and requesting reports. The state network also will need to discuss with the hosting organization whether the state network can use the hosting organization’s employer identification number or if the state network must obtain its own.