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Does the Chamber of Commerce have to be a non-profit organization on the board?

2019-05-15 Business No comment

Not long ago, I was discussing with the members of the local Chamber of Commerce board members the challenges they faced in setting up their own organization. One of their biggest difficulties was the establishment of the board of directors, chief executive or president. It's almost impossible to have all the boards on the same page, they can never decide anything. Therefore, every decision, even the most trivial, is either proposed or presented to the next board agenda. To make matters worse, due to their charter, it is difficult to obtain a quorum for voting on certain things.

In fact, one of the things they want to do is to change the charter to make the meeting more compulsory, but they also need to reach a quorum. It got a mess and they couldn't do anything. To make matters worse, some of their funds come from the city, and those municipal funds help their budget, they only have more conditions attached. To make a long story short, they have almost no money, can't pay anyone to manage this place, and don't move forward to increase membership. "Dead in the water" is a good reference for what happened there.

Well, this raises an interesting question. Does the Chamber of Commerce have to be a non-profit organization on the board? No, but they usually have many reasons. Of course, because many people use the same format, non-profit structure and business model, we can understand why they are having difficulty in the information age of social networking networks and dispersed voters, and many citizens are not even sure about free market economics. To make matters worse, as a non-profit organization, they often take community leadership to maintain influence, and these people will obviously bring their good boy network, politics and bureaucracy.

On the ACCE-US Chamber of Commerce executive website, it clearly states that most chambers of commerce are non-profit and also noted; "In a few cases, for-profit chambers have been established in some communities. These businesses are often traditionally not-for-profit. Sex trade associations evade and nurture.” Therefore, such business groups should be non-profit and provide special federal tax laws for these groups.

In fact, ACCE noted; “Many Chambers of Commerce have established charitable/educational foundations, called 501[c][3] companies, to support specific, eligible parts of the Chamber’s agenda. 501[c][6] ""

The problem with all of this is that it takes a lot of time to build a non-profit organization. It requires legal work, forms, government files and all sorts of things. Even if you do, you have everything. What is really true is to replicate the aging business model. This hinders the success and mission of the small business community, start-up entrepreneurs, and ultimately even the interests of the community.

Personally, I think it is time to abandon the bureaucracy and let some local chambers of commerce or business people come together, no matter what it is, to revitalize our free market system from scratch. It is foolish to operate a business group as a non-profit organization, and frankly, it does not work well. Please consider all of this and think about it.

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