Even MORE from Mallory....

jbushart · July 24, 2007, 4:03pm

Is NAHI really…in the legal sense…a not-for-profit association?

Look at how much the staff is paid from the dues coming from only 1800 members.

Is this more info that should be fed to the Feds?

From_Mallorys_Deposition:

How are you employed?
12 A I’m employed by the Harrington Company, which is an
13 association management company, which has managed NAHI
14 since 1994. '94, '95.
15 Q And is Harrington, is that with an E or an A?
16 A H-A-R-R-I-N-G-T-O-N.
17 Q Where is the Harrington Company headquartered?
18 A At 4248 Park Glen Road, Minneapolis.
19 Q So you are a salaried employee of the Harrington
20 Company?
21 A Yes. I’m a senior account executive with the Harrington.
22 Q You said that you had managed NAHI?
23 A I have managed – that’s what they hired me for. I’ve
24 been managing NAHI since December 26th of the year 2000.
25 Q What is the structure of your compensation scheme from
00012
1 the Harrington Company?
2 A Salary.
3 Q Straight salary?
4 A Yeah.
5 Q Is there any type of commission or incentive program in
6 place in addition to your salary?
7 A No.
8 Q Do you have a supervisor at the Harrington Company?
9 A John Francis is the president and majority owner, but I
10 am also a minority owner.
11 Q Is that a publicly held company or privately held?
12 A Privately. There are six of us.
13 Q And what is your percentage of the ownership in that?
14 A I don’t even know. Like 10. I don’t know. John is the
15 majority owner.
16 Q And what is the — in general what is the line of
17 business of the Harrington Company?
18 A We provide association management services to nonprofit
19 associations. We manage between 20 to 25 nonprofits.
20 Q It’s strictly nonprofits?
21 A Yes, sir.
22 Q Do you manage – do you personally manage any nonprofits
23 other than NAHI?
24 A No, no. NAHI is a national account and that is
25 definitely enough for one person.
00013
1 Q So since you came to be employed at the Harrington
2 Company has the NAHI account been your sole account?
3 A Yes. I had a couple little accounts, but NAHI got too
4 big.
5 Q Is there a written description of your job position or
6 job duties?
7 A The Harrington has written responsibilities generically,
8 but it really is on an account by account basis.
9 Q Can you summarize what the responsibilities for somebody
10 in your position are?
11 A With my responsibilities with NAHI I basically manage
12 the whole – all aspects of the account for the board of
13 directors. I report to the NAHI board of directors, and
14 so I handle – we handle everything from accounting
15 membership, marketing, PR chapters, web site,
16 legislation, I oversee all that. I’m sure I’m leaving
17 out – conferences, education.
18 Q Then NAHI pays the Harrington Company for those
19 services?
20 A Yes.
21 Q And how much does NAHI pay for the – I’m sorry. How
22 much does NAHI pay for those services?
23 A Depending on the year. This year’s contract is $44 an
24 hour per human.
25 Q Is the contract renegotiated each year?
00014
1 A We have a three year – NAHI has a three year contract
2 with Harrington.
3 Q And if I understood what you just said, the amount
4 that’s billed to NAHI depends on the amount of hours?
5 A Yes.** It is billed on an hourly basis, $44 per hour.**
6 Q Whose hours are we talking about? Primarily your hours?
7 A Me, the director of government affairs and the two
8 membership coordinators, so there are four total staff
9 people.
10 Q And do those hours vary from week to week, month to
11 month?
12 A Yeah, pretty typically they vary. One of our membership
13 coordinators works on a different account as well, so –
14 Q Then does the Harrington Company invoice NAHI every
15 month for –
16 A Yes.
17 Q – for the amount of hours that were involved that
18 month?
[size=2]19 A Yes.[/size]

[size=2]
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gromicko · July 24, 2007, 4:14pm

Deleted in response to a personal request.

bwiley · July 24, 2007, 4:15pm

I don’t see where having paid staff would cause them to lose their non-profit status. We have paid staff in the office.

I would state that the membership there should demand more for their money, however. Perhaps instead of suing NACHI and trying to put us out of business through bad legislation they should have been promoting the qualifications of their inspectors, aquiring benefits for their members, and promoting the soundness of their association.

But, they go by the old addage, It isn’t my fault my business stinks, it’s all my competitions fault. :roll: :roll:

gromicko · July 24, 2007, 4:26pm

Deleted in response to a personal request.

gromicko · July 24, 2007, 4:28pm

Deleted in response to a personal request.

bwiley · July 24, 2007, 4:30pm

It is staggering to see that much of membership dues going to four people at the top.

Can I have a raise???

I did not see in the deposition that Mallory owned Harrington. I read it that she was an employee of Harrington.

If she owns them, then yes, I would be worried about their non-profit status as well!!

jbushart · July 24, 2007, 4:35pm

She swore that she is an owner.

gromicko · July 24, 2007, 4:43pm

I want to be fair here with the word “secretly.”

I’m taking my own phone survey of friends who belong to that association. So far, not one of them knew that their Executive Director owned their association’s management company.

If anyone has some evidence to show that this ownership was well disclosed to their membership, please let me know.

I want to be fair.

jbushart · July 24, 2007, 4:47pm

The plot thickens…

This would mean that she would also be getting a share of what NAHI is paying Harrington for the other staff members, as a part owner of Harrington. right?

gromicko · July 24, 2007, 4:50pm

Right, it goes to revocation of their non-profit status. In states like PA one must (by law) be a member of an inspection association that operates non-profit. If you are not a member of a non-profit organization, you are performing inspections illegally in PA.

mboyett · July 24, 2007, 4:51pm

**FOR IMMEDIATE RELEASE **

EXECUTIVES COMPLETE OWNERSHIP TRANSFER OF STATE’S LARGEST ASSOCIATION MANAGEMENT COMPANY

Minneapolis, MN (May 24, 2007) - The Harrington Company, Minnesota’s largest association management company, has announced the completed transfer of the company’s ownership from its founder. With twenty-two association clients, The Harrington Company provides full or partial services to not-for-profit trade and individual member associations and foundations. Internal executives comprised of president John Francis and senior managers Mallory Anderson, Doug Barnes, Gretchen Huetteman, Tony LeClerc and Karen Wesloh now hold one-hundred percent of the private company stock. The company was founded in 1977 by Ed A. Harrington, who worked as its chairman until his death in 2006 at the age of eighty-three.

For additional information, contact John Francis at (952) 928-4666.

jbushart · July 24, 2007, 4:54pm

Wow. Just…wow.:shock:

gromicko · July 24, 2007, 4:54pm

Deleted in response to a personal request.

mboyett · July 24, 2007, 4:58pm

http://www.amcinstitute.org/newsroom/news/THC_MediaRelease_2007May.doc

gromicko · July 24, 2007, 5:01pm

That’s not a press release from the association (disclosure to its members)!

Can anyone find anyone at that association who was informed of this ownership by their Exectutive Director?

bwiley · July 24, 2007, 7:20pm

You’re right. I even cracked on the thought that she didn’t know how much of the company she owned.:shock:

Bad case of CRAFT this week.

Bye Bye non-profit.!!

jbushart · July 26, 2007, 11:13am

You can read the full transcript of Mallory Anderson’s deposition, here.