Alzheimer’s Association – Disaffiliation and Arbitration

In my earlier post I provided personal history related the creation of the Alzheimer’s Association’s “Statement of Relationship” (“Agreement”).   This agreement defines the  legal relationship and obligations between the national Alzheimer’s Association (“National”) and its chapters nationwide.  This agreement guided the recent disaffiliation and arbitration process between the National and Alzheimer’s North Carolina (“ANC”) the successor organization to the Eastern North Carolina Chapter of the Alzheimer’s Association (“ENC”).   The Agreement defines
“disaffiliation” to be the termination of a chapter’s member status with National.

Created through an open and transparent process which solicited and reviewed several hundred comments from all sectors of the Association,  the “Statement of Relationship” provided that national and a chapter had complete control and responsibility for these assets and liabilities without interference from the other so long as a membership relationship existed between them.  The “Statement of Relationship” anticipated a disaffiliation.  At the core of their dispute was the issue of who will control approximately one million dollars in assets which ENC reportedly accumulated during more than twenty six years of operations.   

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About Marty Martin, JD MPA

Marty Martin, JD MPA, Martin Law Firm, Raleigh, North Carolina, provides legal, tax, and training services related to nonprofit, tax-exempt, and social enterprise organizations serving local, regional, state, national, and international constituencies. He works with them throughout their lifecycle including start up, operations and management, board governance, merger, and closing down. He is an instructor with the Duke Nonprofit Management, Intensive, and Advanced Certificate in Nonprofit Leadership programs. He is a BoardSource Certified Governance Trainer. Martin is affiliated with North Carolina State University's Institute for Nonprofits. Martin served for three years on the IRS Advisory Committee for Tax Exempt and Government Entities ("ACT"). He was awarded the IRS TEGE Commissioner's Award which "is the highest honor of the Tax Exempt and Government Entities Division, and the highest honor we can personally bestow" for his service. He received a Master in Public Administration (MPA) degree with a concentration in managing nonprofit and public sector organizations from the Harvard Kennedy School and Juris Doctorate (JD) degree from Western New England University School of Law. He completed advanced training in nonprofit organizations from: Harvard Business School's Initiative on Social Enterprise; Harvard Kennedy School's Hauser Center for Nonprofit Organizations; Duke University's Nonprofit Management Program; University of California Berkeley Haas School of Business; Center for Creative Leadership; BoardSource; and the TCC Group.
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