At its meeting on October 10, 2015, the National Board of Directors approved its Branch Services Committee's recommendation that ESUUS adopt and implement a new organizational and management structure. This legal reorganization, now in process, will provide immense benefits to the ESU at all levels.
The world has changed dramatically in the century since the ESU was founded in the US in 1920. The increased litigious and regulatory environment in which we find ourselves, together with the need for us to establish a unity of organization and purpose, make it incumbent on us to restructure both Branch operations and the organization as a whole. Local organizational Branch structures, which may have worked well decades ago, pose far too many risks today.
The primary goal of this reorganization is to provide better liability protection for all Branch individuals including Board members, members of the Branches and other volunteers, all of whom provide educational programming and support in accomplishing our mission. In addition, this new legal structure will also strengthen and better protect our nonprofit 501(c)(3) tax-exempt status with the IRS.
Under the new legal structure, each ESU Branch will be formed as its own Limited Liability Company entity. This LLC structure provides greater management flexibility which will benefit the Branches and the ESU as a national philanthropic organization.
As we transition into this new LLC structure for all Branches over the next months, ESU members will not notice any significant changes in the daily operations within their Branches. All the benefits and legal liability protections of the new LLC structures will be transparent to members when the new structure takes effect.
As the ESU confronts the challenges of the 21st Century and re-affirms our mission in a spirit of unity of purpose, we can all take pride in our ability to adjust to new realities. When our new legal restructuring is complete early in the new fiscal year, we are confident the ESU will meet and even exceed the best practices and governance policies which align with the most successful nonprofit organizations in the US.