Sibling Rivalry
Associations and Their Foundations Work Out Their ‘Issues’
Blood may be thicker than water, but every family has disagreements — and some have all-out battles. The relationships between associations and their foundations can be described in much the same way. While the two organizations share a common background and mission, they often find themselves competing for resources and attention, creating friction that rivals the most dysfunctional of families.
Association foundations are usually founded as vehicles for tax-exempt fund-raising to support the goals of the association, but because they are legally separate entities, the two often get carried away with their own programs and sometimes become increasingly divided rather than united. The problem of less-than-harmonious relationships between associations and their foundations is not rare. And in addition to limiting the potential of both organizations, such strained relationships can also cause stress and chaos for meeting planners and other staff members.
Why Can't We All Just Get Along?
According to those who work in the trenches of association foundations, there are a variety of reasons for the rivalry that often exists between associations and their foundations. "A foundation is typically incorporated after its parent association has been established and has been active for a number of years," said Robert Vitas, Ph.D., CFRE, foundation director for the American Academy of Pediatric Dentistry. "I believe that a natural suspicion can arise from the members and leadership of the parent, especially if the foundation does not provide a great deal of information relative to its activities. Questions can arise such as, 'Why do we need a foundation?' and 'Weren't we doing what was supposed to be done?' This is especially the case if the foundation's board tries to steer its organization away from the mission of the parent, and that has indeed happened."
"In my experience, friction between associations and their foundations has most often occurred because of competition for financial support or because of program overlap," added Sharon Mellor, CAE, executive director of the American Academy of Periodontology Foundation. "In the first case, the organizations find themselves in the position of both seeking financial support from corporations in the form of sponsorships or donations. As the pressure increases to secure new sources of income, an organization can come to feel that its sister organization is a competitor rather than a partner. In the second case, organizations sometimes get carried away with enthusiasm for new programs and initiatives, without realizing that their partner organizations might be in a better position to develop the program because of expertise, structure, credibility, or other factors." Some association-foundation relations suffer simply because of personality conflicts.
Impact on Staff
When association and foundation board members seem to be at odds, their attitudes can make the jobs of meeting planners and other staff members difficult. For instance, many meeting planners have to attempt to create programs that will please both boards, a goal that may be impossible. Often, foundations are more interested in pleasing supplier partners, those who are making large donations, while associations are more interested in pleasing their members.
In addition, planners' budgets for meetings may fluctuate from year to year based on association-foundation relations, especially when budgets are controlled by the foundation, as they often are.
Overcoming the Challenges
As with most relationships, communication is crucially important for helping associations and foundations stay on positive terms. "The key issue is communication," said Scott Litch, Esq., CAE, deputy executive director and general counsel for the American Academy of Pediatric Dentistry (AAPD). "Each board needs to be aware of the planning and priorities of each organization and develop a close working relationship. Ideally, there should be cooperation, not competition, since the foundation serves to carry out charitable and educational activities important to the association. At the AAPD, communication is fostered by having several members of the association sit on the foundation's board. We find this facilitates informed decision-making and coordination of action between the two entities."
At PCMA, the two boards hold joint meetings at least once or twice each year to exchange ideas and deter- mine how they can better work together. The chair of each board also sits on the other board, and minutes from both board meetings are openly shared between the two groups.
In addition to strong communication, the staff and leadership of the association and its foundation must maintain similar priorities. "It is important that everyone realize that both organizations are serving the same profession," Mellor said. "For example, Alice DeForest, the executive director of the American Academy of Periodontology, and I visit potential corporate partners together. In this way we are able to offer them a menu of options and work with them to identify those which best meet their needs. As Alice often says, 'Sometimes the academy comes out ahead and sometimes the foundation comes out ahead. But periodontology always wins.' When we are able to work with a corporate donor to identify and meet needs, we are able to maximize support for the specialty."
Although associations and their foundations are separate legal entities, they usually share a common mission - and remaining focused on that mission and the organizations' common ground will help build a positive relationship.
While forging a positive relationship may take leadership from the top, staff members at all levels can play an important role in maintaining the harmony. Staff members can help facilitate the sharing of information and ideas among the two organizations and their boards, making sure they are each aware of what the other is doing.

