Chapters provide a variety of benefits to their parent organizations. Even with the growing number of virtual communities providing networking, knowledge sharing, and distance learning, regional chapters still facilitate many face-to-face interactions that members value. They also help grow membership and develop organizational leadership.

But the chapter model also presents risks. Poorly organized chapters can drain resources from the parent organization, put its tax status in jeopardy, and create legal or reputational problems.

Regardless of the organizational structure—whether chapters are fully integrated or loosely affiliated, individually incorporated or registered as legal entities with local governments—it is critical that an affiliation agreement exists between parent organizations and regional chapters to mitigate these risks.

Affiliation agreements define the relationship between the chapter and association and outline obligations for a successful partnership. They establish the right of the chapter to use the parent organization's name and receive special assistance for agreeing to certain standards of conduct, oversight, and formal requirements. They even outline what happens if the relationship between the chapter and parent organization must be dissolved. It's important to be prepared for what you hope never happens.

When drafted properly, the chapter affiliation agreement is the essential document that lays out the expectations of the parent organization and chapter.

Affiliation agreements state what reports chapters must file and what requirements must be met to maintain chapter status, as well as what services the parent organization will provide, including staff support, dues collection, financial assistance, website maintenance, or other technical support. When drafted properly, the affiliation agreement is the essential document that lays out the expectations of the parent organization and chapter.

Revising Affiliation Agreements

Generally speaking, it is far easier to set up affiliation agreements with new chapters as they are chartered. Requiring established chapters to sign new or amended agreements, especially if little oversight or reporting requirements existed previously, presents unique challenges. But it can be done successfully.

At ISPOR–the International Society for Pharmacoeconomics and Outcomes Research, we are working with more than 80 global chapters, many of them well established, to sign new affiliation agreements as part of a governance review project. The old documents did not provide adequate protection for ISPOR or the chapters, and they contained references to outdated policies. Here are some best practices we have followed during the process:

Start with legal support. Consult with legal counsel to review your current agreements and draft new ones. Other documents, such as chapter bylaws or constitutions, should be included.

Review current policies and consider updating. In our case, we adjusted minimum requirements for chapter size and established guidelines for when a chapter needs to consult with headquarters about working with local governments, establishing relationships with other organizations, and arranging regional conferences.

Gain buy-in from leadership and staff. The ISPOR board of directors was supportive and named a well-respected leader to champion the project. Staff who were experienced with governance issues also helped manage the work.

Consult all levels of chapter membership. Regional and chapter leaders were highly involved and engaged. A small group of experienced leaders representing the global membership were named as regional advisors to support and promote the project locally.

Communicate and be transparent. A consistent message was communicated concerning how the new agreements would benefit the chapters and the association. We organized webinars for the regional advisors and other interested members to discuss the process and rationale. We also drafted a list of frequently asked questions, presented at in-person regional meetings, and created a dedicated email address for member questions. And we provided regional chapter leaders with an opportunity to review the documents, listened to their concerns, and made changes when possible. Staff liaisons were trained on these best practices and provided support, and we are working on new tools and training for chapter leaders.

Stay flexible and responsive. For some chapters, the affiliation agreements needed to recognize and reflect the unique requirements of different countries. And in certain cases, we provided financial support to help chapters in economically challenged locations obtain legal resources. Taking regional issues into consideration was time-consuming but has resulted in greater cooperation and good will.

Finally, be sure to give chapter leaders ample time to sign the agreements and communicate the changes to their membership.