Association Components Commonly Used Terms

Within the association community, we have many terms for our member communities that are somewhat vague and too often used interchangeably.

This info sheet is intended to provide a guide for understanding the terms commonly used to refer to member communities and their relationship with a lead organization. Sources include Component Relationship Handbook (ASAE), IRS and Association Law Handbook (ASAE).

Affiliated Organization: Autonomous organization which has some level of formal relationship with a central association. Generally, they are local components operating in a specific geographic area, although they can include sub-specialty organizations. (See Allied Society) Other names: Sections, Councils, Affiliates, Allied Society.

Affiliation Agreement: A binding legal document that defines the relationship between the central organizations and its component.

Affiliation Structures:

• Single Organization – chapters are sub entities within the central organization which no legal or operational independence
• Parent/Subsidiary – central organization and chapters are separate, legal organizations with a parent authority through governance and polices; generally, operate under charter or affiliation agreement
• Contractual Affiliation – central organization and chapters are separate organizations, which may or may not be legally independent, operating under an agreement

Allied Society: Autonomous organization which has a relationship with a lead organization. (See Affiliated Organization)

Chapter: A branch of a central organization operating in a specific geographic area. While the organization may be separately incorporated, it generally operates under the authority and permission of the lead organization.