Notice Concerning Status of Chapter You should know that CEC International underwent a significant reorganization several years ago. As a part of that restructuring, CEC International no longer recognizes local chapters. It has left the determination of whether or not local chapters exist to the State CEC organizations. California State CEC is addressing that issue, among many others, at this time. Since CEC International flows all rebate funds to the State organization, California State CEC would become the conduit to pass any dues rebates on to the local chapters that it recognizes. This, however, has created a significant problem for California CEC with regard to the taxing authorities. California State CEC is a non-profit 501 (c) 3 organization. As such, it is held accountable for ALL funds it receives and disburses. Unless the recipient organization is also a non-profit tax-free organization, this creates a potential administrative nightmare to a volunteer organization. At this time, only Chapter 188, as a 501(c) 3 entity, would meet the requirement of being a non-profit tax-free organization Our accountant has advised us to suspend the by-laws with regard to the status of chapters until we have reorganized to reflect the changes created by CEC International’s restructuring. California State CEC has complied with the advice of our accountants and is working with legal representatives to address the issues with which we are confronted. We encourage you to continue reactivating or initiating a chapter so that if and when we are in a position to approve them, yours will be ready to go. In the meantime, we will keep you updated on this issue as soon as we have further developments. |
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