Chapter 6: Division Funds and Financial Services
The Council of Representatives sets the amount of basic membership dues for the Association. An APA member may belong to one division without paying additional APA dues. APA contributes two dollars from the member's basic dues for his/her first division membership. For each additional division he/she wishes to join, the member pays two dollars in additional dues. Beyond these dues, divisions may vote special assessments to augment their financial resources.
The APA dues statement for the following year is mailed to all APA members in late September to be paid by a specified deadline prior to the following year. All division memberships are indicated on this statement and will reflect new divisional membership including:
The total amount of division dues and assessments is indicated on the APA dues statement. Payment of these dues and assessments will continue membership in divisions.
Members cannot become a member of a division by simply adding that division on the dues statement and enclosing the additional dues and assessment amount. Money sent to APA for this purpose is returned to the member. A division interest form is included in the dues packet. Members should indicate the divisions they wish to join on the form and return it with the dues statement. Payment for joining new divisions should not be sent in with the dues statement.
Division assessments of varying amounts are charged by each division. The amount of the following year's assessment is generally voted on at the division's annual membership meeting during the APA convention. Divisions must inform the APA Membership Department in writing of the amount of division assessments for the next calendar year within 5 days following the annual convention. In the event that the division does not inform Membership of the new assessment amount, the amount of the previous year's assessment will remain in force and appear on all division members' APA dues statements. The Membership Department requests that any division send an explanatory note for any large increase in the division's division assessment over the previous year. (For example, a new division journal may increase the assessment amount enough to warrant a summarized explanatory note in the annual dues statement mailing.)
APA has developed standard procedures for prompting the payment of APA dues. The annual membership dues billing takes place in late September. In early January of the following year and again in mid-February, follow-up APA membership dues packets are sent to non-respondents. Reminder notices are sent to unpaid members in November, January, and March. Divisions are invited each year (usually in January and February) to participate in the mailing of a postcard reminder notice to those members who have not paid dues.
Division memberships are carried over from year to year until the member explicitly resigns from a division by crossing off the division membership and assessment from the annual APA dues statement. However, the APA dues billing system is not currently designed to bill members for prior year divisional assessments or dues. (See also Election to a Division and Division Assessments.)
"Resignation" by Non-Payment of Dues
Under the APA Bylaws (Article XVIII, Section 3) non-payment of dues for two consecutive years is considered equivalent to a request for resignation from the Association. During this two year period, a member retains all membership rights, including voting privileges, but he/she does not receive his/her member journals (American Psychologist and the Monitor). Shortly before the end of the two year period, a final notice is sent as an opportunity for payment of the delinquent dues. If the dues are not paid after this two year period, the member is dropped from APA membership.
A member who has resigned voluntarily or through non-payment of dues, may have his/her membership reinstated. Individuals interested in reinstatement should write to the Membership Department.
(2) Payment of current dues and assessments re-establishes membership in APA and any former divisions as of the current year. The period of nonpayment will not be counted in determining eligibility for dues-exempt status. This procedure for reinstatement can be used only once and is not available to former members who were under scrutiny by the APA Ethics Committee at the time membership was terminated.
An individual who has been dropped from membership as the result of conduct violating the Ethical Principles of the Association (APA Bylaws, Article II, Section 18), may reapply for membership after five years have elapsed. Members who have been permitted to resign under these conditions may reapply after three years have elapsed. The Ethics Committee considers and makes recommendations to the Membership Committee on all reapplications.
Life Membership Status (Dues Exemption)
Under Association Rule 10-11.1, "any member who has reached the age of 65 and has belonged to APA for a total of 25 years may choose to begin the dues-reduction process, culminating in dues exemption by so advising Central Office of his or her eligibility." Likewise, "any member, who, regardless of age or length of membership, has been adjudged totally and permanently disabled, may choose to become exempt from dues by so advising Central Office of his or her eligibility."
The dues reduction schedule is as follows:
Step 2 (second year) -- 70% of regular dues
Step 3 (third year) -- 50% of regular dues
Step 4 (fourth year) -- 30% of regular dues
Step 5 (fifth year) -- full dues exemption
Life Members may order journals at the same low rate as dues paying members. Life members are required to pay a $50 publications and servicing fee if they wish to receive the Monitor and American Psychologist. When full dues exemption is attained, the subscription price/servicing fee option becomes available.
Association Rule 100-6.1 states that "divisions may, at their discretion, assess and collect from these members a mandatory subscription price/service fee to cover the costs of providing such division publications as may be requested by these members." When full dues exemption is reached in APA, the Member is exempt from division dues as well. Members pay full division dues until they reach Step 5. The reduced dues for the first through fourth years do not apply for division dues. At Step 5, the Member must pay the division publication fee if the division has one and if he or she wants to receive the division publication or publications covered by the fee. More information.
Handling of Division Funds
All funds collected by APA for the divisions are credited to accounts maintained for each division by the Financial Services Department. Each division must select one of the following two methods of accounting for the funds received.
All funds received by APA are remitted to the division. During the months of October through April, a check is sent to the secretary/treasurer within three weeks of a month end accompanied by an Accounts Receivable (A/R) Subledger Report by Account. This report provides date, member name, APA membership number, amount, and membership category. During the months of May through September, division dues checks and reports will be issued on a monthly basis for those divisions whose dues collected are equal to or in excess of $100. For those divisions whose dues collected are less that $100, the division dues checks and reports will be issued once the aggregate of two or more months dues is equal to or in excess of $100. If the aggregate dues from May through September does not reach $100, a check and a report will be mailed to the secretary/treasurer in October.
APA offers complete accounting services at no cost to those divisions that elect to have APA handle their funds (with the exception of a nominal fee for credit card processing). Funds collected by APA will remain in the division's account as operating cash and earn interest until requested by the division to disburse funds. Cash disbursements to pay for expenses must be authorized by the secretary/treasurer (or president, if payment is made to the secretary/treasurer) and must have appropriate documentation attached to the request. APA issues monthly reports to the division. The reports consist of a balance sheet, an income/operating statement, an interest statement, and monthly activity reports (cash receipts for dues, other revenue, and cash disbursements). For those applicable divisions, the following reports are provided: a budget, investment statement, monthly activity reports of checking and/or savings accounts, and attribute transaction journals for investments not established by APA, travel advances, deposits and other advances, prepaid expenses, and accounts and/or interest receivable. For the months of October through December, monthly activity reports are provided for deferred dues revenue and other deferred revenue.
For additional information, please contact the Financial Services Department.
Auditing of Division Accounts
All division activity is reported on a calendar year basis. The year-end report is provided to each participating secretary/treasurer in the first quarter of the following year. The report includes all activity prior to December 31. The APA third party audit is based on the December 31 activity, therefore, all divisions are urged to send all requests for disbursement to the Financial Services Office prior to December 31.
Tax Exempt Status, Annual Financial Report and Tax Returns
Tax Exempt Status
APA and most of its divisions are exempt from Federal tax under section 501(c)(3) of the Internal Revenue Code. As such they are required to operate exclusively for charitable, scientific and educational purposes. Before any division undertakes any activity that does not fall under these purposes, it much consult with APA's General Counsel.
Annual Financial Reporting
Association Rule 100-1.2, as amended in August, 1995, requires that divisions include financial information (including a copy of its annual tax return) in its annual report. For divisions that participate in the group return, the tax return packages provided by Financial Services in February will fulfill this requirement when completed. Divisions that prepare their own tax returns are requested to submit copies of the division balance sheet and income statement. All divisions should return this information by early March.
Divisions that are separately incorporated must apply to the Internal Revenue Service for tax exempt status and are responsible for filing an annual federal tax return. The APA General Counsel will provide assistance to the division in this process and also with any applicable state tax issues. Financial Services is responsible for filing a group federal return for those divisions which are not separately incorporated. Information included in the division's tax return package is the basis for the preparation of the tax return forms. Completion of the tax package is essential to those division included in the group return.
Any division which is contemplating fundraising activities should notify the Division Services Office. Staff will review the plan for policy and protocol and research the possibility of conflict with concurrent efforts on the part of APA or other divisions. The division is asked to avoid using current advertisers in APA journals and APA annual convention exhibitors to prevent a negative impact on APA's own revenue stream. (See also External Funding of APA Convention Activities.)
Note. See Appendix X for comprehensive chart of APA services provided to divisions.