Based on advice from our lawyers, the PDK International Board unanimously approved a motion requiring all PDK chapter presidents sign a PDK Chapter Affiliation Agreement. The affiliation agreement more clearly describes the legal relationship between PDK International and its chapters.
As you may be aware, the Internal Revenue Service (IRS) has implemented new congressionally mandated requirements for nonprofit organizations. One example is the new IRS requirement that all nonprofits and each of their affiliates, i.e., chapters, file a Form 990 each year. Affiliation agreements like the one you will receive is another document that the IRS considers when reviewing an association’s nonprofit status.
Chapters will have a chance to review the affiliation agreement and will need to sign, date and return the signature page to PDK International. The deadline is December 31, 2013.
Note that the affiliation agreement requires that your chapter adopt PDK-approved bylaws included in Exhibit B. These bylaws will need to be submitted to PDK International by June 30, 2014.
We realize that you may have questions regarding the affiliation agreement so we held a webinar on Tuesday, November 12th. We explained the agreement and then answered your questions. If you were unable to attend the webinar, you can listen to the recording at any time.