AVERT Policies and Procedures 3000
AVERT Chapters

1.0 PURPOSE

To provide a uniform method by which AVERT Chapters may be formed and to assure adherence to the Central Organization's Articles of Incorporation and Mission of AVERT to promote and support CERT programs.

2.0 DEFINITIONS

2.1 AVERT - Acronym for the Association of Volunteer Emergency Response Teams.

2.2 ERTs - Acronym for Emergency Response Teams.

2.3 BOARD - The governing Board of Trustees or Directors of the Association of Volunteer Emergency Response Teams or its subdivisions and subordinate organizations.

2.4 ORGANIZATION - Any Committee or other subdivision authorized by the Central Organization or Subordinate Chapter Board of Directors, whose operations are funded by AVERT Corporate or Subordinate Chapter funds. The "organization" is the standard term to reference subdivisions of the AVERT Board. Financial policies of AVERT provide that accounting, budgeting and fixed asset information be maintained by "organization." Each AVERT subdivision, or subordinate organization, is assigned a unique "organization" number.

2.4.1 CENTRAL ORGANIZATION - The founding organization of the Association of Volunteer Emergency Response Teams, as organized under the laws of the United States and the State of Utah. This organization, in compliance to Internal Revenue Service Rules for 501 (c) (3) corporations, is responsible for the Group Letter of Exemption reporting requirements described in IRS Publication 557.

2.4.2 CHAPTER - An organizational subdivision authorized by the Central Organization Board of Trustees of the Association of Volunteer Emergency Response Teams, Incorporated in Salt Lake City, Utah, United States. In the United States, AVERT Chapters are defined by political boundaries and generally follow the same reporting chains as established for political subdivisions of governments. City chapters report to County chapters, which report to State chapters, which report to the Central Organization.

2.4.3 CORPORATE - Another term used to describe the Central Organization.

2.5 MEMBER - A general term to mean any AVERT Member that has made application to and has been accepted by the AVERT Board of Directors. The various categories are collectively known as the MEMBERSHIP.

2.5.1 BOARD Member - Any individual, age 18 or higher, duly elected to a seat on the AVERT Corporate or subordinate Chapter Board of Directors, has been assigned to represent a subordinate standing committee, has agreed to a term of service of at least three years and who has full voting rights in AVERT organizational business. These members need not be CERT certified. Candidates for Board Membership should demonstrate experience, knowledge or skills which will further AVERT's goals and mission. These members shall be assessed dues of Twenty Dollars ($15.00) annually. Special procedures apply to this membership category.

2.5.1.1 Example, the fees of the Central Organization Directors are paid to the Central Organization's Treasurer who then credits the Corporate accounts. The fees of the Chapter Directors are paid to the Chapter's Treasurer who then credits the Chapter accounts.

2.5.2 PAID Member - Any individual, age 18 or higher, or business or government/municipal representative that has made application to, and been accepted by, their Corporate or Chapter Board of Directors, has been assigned to work on a standing committee and who has full voting rights in AVERT Committee Business. These members may form new chapters in accordance with this Policy and Procedure, or work on existing Committees, or Corporate or Chapter staffs. These members shall be assessed fees of Fifteen Dollars ($15.00) annually.

2.5.3 FREE WEB Member - Any individual, age 15 or higher, that has an interest in CERT or emergency preparedness and response. These members may work on existing committees and may attend AVERT Board Meetings. FREE WEB Members between the ages of 15 and 17 may not work on Regional or Chapter staffs except as provide by Local, State and Federal labor laws. They are responsible for advising their respective AVERT Board with respect to their Community or Company ERT needs. These members have no voting rights except within any committee on which they serve. They shall not be assessed fees.

2.5.4 HONORARY Member - Any person or entity declared by a Resolution of the Corporate or subordinate Chapter Board Members to have provided a vital service, or other significant benefit, to AVERT and their Community. These members have no voting rights in AVERT Business and shall not be assessed dues.

2.6 VOLUNTEER - A general term to mean any individual that provides services to AVERT without receiving monetary or material compensation or any person providing services under Court ordered Community Service.

2.7 EMPLOYEE - A general term to mean any individual that provides services to the Corporation and is receiving monetary or material compensation and benefits in accordance with State and Federal Labor laws.

3.0 ANNUAL REPORTING AND OTHER REQUIREMENTS OF CHAPTERS

3.1 The Central Organization's fiscal year is January 1, to December 31. The Central Organization is required to report annually, at least 90 days before the close of its annual accounting period, the following information:

3.1.1 Information about all changes in the purposes, character or method of operation of the subordinates included in the group exemption letter.

3.1.2. A separate list (that includes the names, mailing addresses, actual addresses if different, and the EINs of the affected subordinates) for each of the three following categories:

3.1.2.1 Subordinates that have changed their names or addresses during the year,

3.1.2.2 Subordinates no longer to be included in the group exemption letter because they no longer exist or have disaffiliated or withdrawn their authorization to the central organization, and,

3.1.2.3 Subordinates to be added to the group exemption letter because they are newly organized or affiliated or because they have recently authorized the central organization to include them.

3.1.3 The information required to be submitted by a central organization on behalf of subordinates to be included in the group exemption letter is required for subordinates to be added to the letter. The central organization shall file IRS From SS-4, "Application for Employer Identification Number" on behalf of newly organized subordinates with the central organization's group exemption letter submission.

3.2 The subordinate organization shall set its fiscal year by a resolution of the Board of Directors of the subordinate organization. These subordinate organizations shall be known as Chapters and are required to report the following information annually to the central organization:

3.2.1 Information verifying that the subordinate:

3.2.1.1 is affiliated with the central organization,

3.2.1.2 is subject to the central organization's general supervision or guidance,

3.2.1.3 is eligible to qualify for exemption under section 501 (c) of the IRS Rules, though not necessarily the same paragraph as the central organization,

3.2.1.4 is not a private foundation if the application for a group exemption letter involves section 501 (c) (3) of the IRS Rules,

3.2.1.5 is on the same accounting period as the central organization if they are to be included on group returns, and,

3.2.1.6 has been formed within the 15 month period preceding the date of submission of the group exemption application if they are claiming section 501 (c) (3) status and are subject to the requirements of section 508 (a) of the IRS Rules and wish to be recognized as exempt from the date of creation (a subordinate organized more than 15 months preceding an annual application by the central organization may apply for group exemption provided it agrees to be recognized as exempt from the date of application rather than its date of creation),

3.2.2 A detailed description of the purposes and activities of the subordinate, including the sources of receipts and the nature of expenditures,

3.2.3 A sample copy of a uniform governing instrument ( such as a charter, articles of association or incorporation, or bylaws) adopted by the subordinate, or, in its absence, copies of representative instruments,

3.2.4 An affirmation to the effect that, to the best of the officer's knowledge, the purposes and activities of the subordinate(s) is as stated in 3.2.2 and 3.2.3 above,

3.2.5 A statement that each subordinate to be included in the group exemption letter has given written authorization to that effect, signed by an authorized officer of the subordinate, to the central organization

3.2.6 A list of subordinates to be included in the group exemption letter to which the IRS has issued an outstanding ruling or determination letter relating to exemption,

3.2.7 An affirmation to the effect that, to the best of the officer's knowledge, no subordinate in the group exemption letter is a private foundation as defined by section 509 (a) of the IRS Rules,

3.2.8 For each subordinate that is a school claiming exemption under section 501 (c) (3) of the IRS Rules, the information required by Revenue Ruling 71-447 and Revenue Procedure 75-50 (see IRS Form 1023, Schedule B).

3.2.9 For any school affiliated with a church, the information to show that the provisions of Revenue Ruling 75-231 have been met,

3.2.10 A list of the names, mailing and actual addresses if different, and EINs of subordinates to be included in the group exemption letter. A current directory of subordinates may be furnished instead of the list if it includes the required information and if the subordinate(s) not to be included in the group exemption letter are identified, and,

3.2.11 The information of 3.2.1 through 3.2.4 may be omitted if a statement to the effect that, the information upon which the group exemption letter was based applies in all material respects to these subordinates.

3.3 The subordinate organization shall prepare a brief summary of significant accomplishments or activities for each operational year that it continues as an affiliate of the central organization. This constitutes the annual report of the subordinate and must be approved by a simple majority vote of the membership in attendance at the subordinate's first board meeting of each operational year. This annual report shall also include a generalized statement of financial condition (i.e.; total revenues and total expenses) of the subordinate organization.

3.4 Financial accounting shall remain within the structure of the subordinate organization provided the subordinate files a separate IRS Form 990, "Return of Organization Exempt From Income Tax". All financial records shall be kept and maintained by the subordinate organization for a period of not less than three years and not more than eight years. After eight years, financial records may be archived in a manner consistent with technology at the time.

3.5 Chapters shall modify and adopt such policies and procedures as needed to maintain internal control and accommodate competent jurisdiction regulation of business. For example, the central organization must adopt policies and procedures which comply with federal laws and Utah State Department of Commerce rules and regulations which govern nonprofit organizations. Since the central organization is also a county chapter, it must comply with county business regulations as well.

3.6 Chapters shall obtain General Liability and Directors and Officers Insurance coverage as soon as practical after forming a chapter and shall pay the premiums from chapter funds. Other insurance policies may be required of a chapter depending upon the organizational structure of the chapter. For example, a chapter which hires employees must obtain worker's compensation insurance for those employees. Note that volunteers may be considered employees in some circumstances. Note also that chapters formed solely of government agencies and granted limited government powers may not require insurance policies at all. Instead, these chapters are usually covered by the government agency's insurance policies. Until the chapter can secure its own general liability insurance, the central organization will extend coverage of students and facilities using its General Liability policy. In this case, the course offering or event must acknowledge AVERT as the sponsor, otherwise, the insurance will not cover the event.

3.7 Chapters must be formed by not fewer than three, and not more than twelve, Board Directors or PAID Members and will begin paying Member fees of fifteen dollars ($15.00), annually, when their subordinate organization receives an EIN from the U. S. Internal Revenue Service.

3.8 Chapters formed in the State of Utah may use the central organization's sales tax exemption number when purchasing supplies and materials for the chapter. Chapters formed in other states or countries may be required to obtain a unique exemption from their local government's department of commerce or business regulation, and may use the central organization's sales tax exemption number when purchasing supplies and materials for the chapter from Utah based suppliers.

3.9 Chapters that have not received an EIN must process contributions and donations through the Central Organization financial system in order for contributors and donors to claim deductions. Chapters in this position should instruct donors to make checks payable to AVERT and to write a memo on the check to the effect that this donation is for your chapter. The Central Organization will then receive and distribute the funds to your chapter Treasurer.

4.0 ENABLING INSTRUMENTS AND NOTICES

4.1 Chapters must adopt enabling instruments (such as articles of association or bylaws) which provide for; naming the chapter and identifying office locations, purpose statement for the chapter that meets the requirements of the IRS for 501(c)(3) organizations the selection and replacement or removal of chapter officers, conducting board meetings of the chapter and rules of order, descriptions of the various positions within the organizational structure of the chapter including term limitations if any, formation of standing and ad-hock committees as may be required to conduct the business of the chapter, amending the enabling instrument, and extending daily control over chapter activities by adopting the chapter's policy and procedure manual by reference . Chapters may adopt by reference, the central organization's policy and procedure manual, or may reference the chapter's manual. See 4.3 below.

4.1.1 Chapters must provide in their bylaws, or other enabling instruments, for notices of annual meetings to the chapter membership. Ten days advance notice must be published through either broadcast, print or electronic media. The central organization will maintain a web site for chapters to announce schedules of meetings and events.

4.2 Chapters should adopt a set of policies and procedures which provide controls for finances, administration and volunteer or employee relations. The Chapter may adopt the central organization's policy & procedure manual and may subsequently modify or replace as needed to fit the needs of the chapter.

4.3 Chapters must adopt the basic mission statement of AVERT at the same time as adopting their enabling instrument(s). Chapters may modify the mission statement with a 2/3rds majority vote of the chapter board, however, no modifications are permitted which significantly change the basic mission of AVERT or violate the spirit of the CERT program in general.

4.4 The central organization shall maintain a web site and other administrative tools for the purposes of administrative and educational support of all AVERT members and chapters. Links from the central organization web site shall be made to subordinate web sites after the web master has verified the consistency and integrity of the suggested site. Chapters should endeavor to establish their own web sites to serve their own membership as soon as possible.

5.0 PROCEDURE TO FORM A CHAPTER

5.1 A "Chapter Organizing Committee" will form consisting of not less than three, and not more than twelve, AVERT Corporate or Chapter Board Directors or PAID Members.

5.1.1 Chapter Organizing Committees shall set and announce a time, place and agenda for the first committee meeting.

5.1.2 Committee members will be assigned tasks to be completed before this meeting. Specifically, an enabling instrument (such as Articles of Association or, more commonly, a set of bylaws) and a mission statement must be drafted and presented at the first meeting for debate and revision or adoption.

5.1.3 Subsequent meetings will be scheduled and announced, as needed, until the enabling instrument and mission statement have been approved by the Committee.

5.2 The Chapter Organizing Committee will request time in the agenda of the corporate or chapter board meeting for the purpose of proposing the new subordinate chapter.

5.3 The corporate or chapter board will hear arguments or statements of need from the committee, then debate the establishment of the proposed chapter and approve or deny the proposal.

5.3.1 If the new subordinate chapter proposal is denied, the chapter organizing committee may appeal to the next higher chapter or corporate board. If the corporate board denies a proposal or appeal, the committee may appeal by use of the corporate grievance policy and procedure.

5.3.2 If the proposal is approved, the chapter organizing committee members will assume the duties and powers of Board Directors of the newly established chapter.

5.4 Newly established Chapters shall report to the organization which established the subordinate chapter, and shall provide an annual report to that organization in compliance with this procedure.

5.5 Chapters which approve and establish subordinate chapters must include in their annual report to the corporate board, a request for including their subordinates, along with any necessary information, in the central organization's annual group exemption letter to the IRS. Also, approving chapters must submit a completed IRS Form SS-4, "Application for Employer Identification Number", for any subordinates which do not already have an EIN.

5.6 Chapters must add, or otherwise incorporate, the AVERT Corporate logo into new or existing Chapter letterheads, public relations campaigns, fund raising campaigns or any other event or document which displays the Chapter's logo.

6.0 AVERT AUTHORITY

6.1 By approving an application for chapter formation, the central organization authorizes each subordinate organization to define, control and support their operations and programs, and to engage in any and all business activities and practices which further the corporate and chapter missions subject to the IRS and government rules and regulations which govern the operations of 501(c)(3) nonprofit corporations. AVERT further authorizes subordinate organizations to reproduce and issue the AVERT member ID card, implement a member identification number system within their chapters, reproduce and distribute AVERT's Emergency Responder Newsletter, offer CERT basic and advanced training classes, exercises, drills or seminars as required to promote and support the CERT program, negotiate binding contracts between the chapter and other agencies, vendors or contractors, sponsor events (either financially or with event staffing) offered by other organizations provided these events are not contrary to the CERT program goals, and to engage those agents, officers, employees and volunteers as may be needed to implement the chapter programs and achieve its goals.

6.2 AVERT's mission is to promote and support the Community Emergency Response Team (CERT) program as defined by the Federal Emergency Management Agency (FEMA). AVERT has no regulatory authority over the CERT Program nor any CERT trained citizens except to the extent that these programs or citizens become chapters or members of AVERT. AVERT and AVERT chapters may remove subordinate organizations from their group exemption letters if, in the opinion of the higher organization, the subordinate has failed to operate in a manner consistent with the mission and goals of the higher authorizing organization. In effect, this action revokes that subordinate's authorization to operate or act in the name of AVERT and may subject that subordinate to possible criminal or civil penalties, depending on the nature of the subordinate's actions which prompted the removal action.

6.3 AVERT does not have a response or relief mission! When disaster strikes, AVERT members respond with their own neighborhood or business teams. This means that AVERT chapters are not subject to regulation by government emergency service agencies, rather, all AVERT chapters are subject to government business regulation agencies. Care must be exercised when planning AVERT sponsored events to ensure compliance with all business regulation requirements (i.e.; permits or licenses).

6.4 AVERT's support mission involves maintaining records and coordinating the release of information between CERT trained citizens and government agencies. Since AVERT collects sensitive and private information about citizens taking CERT training, each chapter is responsible for protecting the privacy of individuals listed in their databases. Only those records and information which is necessary to accomplish the project goals should be transferred between individuals, AVERT Chapters and government agencies.

7.0 BUSINESS OR AGENCY

7.1 AVERT is organized as a private nonprofit 501(c)(3) corporation. AVERT policies and procedures are written to accommodate both business or agency types of chapters.

7.1.1 An Agency Chapter is one that derives one-third (or 10%, see the Facts & Circumstances test) of its funding from governmental units, from direct or indirect contributions from the general public, or from a combination of these sources and is considered a public charity by the IRS. The Board of Directors is usually composed of government emergency officials and a measure of regulatory authority over CERTs is often conveyed to the chapter by an official government agency. Restrictions on fund raising activities and advertising are sometimes imposed by the government agency.

7.1.2 A Business Chapter is one that derives less than one-third (or 10%, see the Facts & Circumstances test) of its funding from governmental units, from direct or indirect contributions from the general public, or from a combination of these sources and is treated as a private foundation by the IRS. The Board of Directors may be composed entirely of private citizens or may include some government emergency officials. These chapters generally do not have regulatory authority over CERTs and are restricted only by IRS and local government regulations which govern the operations and activities of 501(c)(3) nonprofit organizations.

7.2 Fund raising activities are evaluated by relevance to the chapter's mission and goals. Selling merchandise is a good way to raise funds for the chapter, but, may result in loss of exempt status if the IRS determines that your chapter is unfairly competing with similar for-profit businesses. Study IRS Publication 557, "Tax-Exempt Status for Your Organization", and ensure that your fund raising personnel are familiar with the accepted practices for tax exempt fund raising.