Many ask why there are two corporations and why aren't OKCMAR & MLS one in the same? OKCMAR is a NON-PROFIT. As a non-profit trade association the IRS limits what activity an association can involve in which typically the is defined in its charter. Providing business services outside of the charter can lead to loss of the non-profit status and revenue generated from the business services SUCH AS MLS is subject to Unrelated Business Income Tax (UBIT) and too much UBIT will also result in the loss of the non-profit status. This means no association because the three way agreement with OAR & NAR require that we operate as a non-profit.
OKCMAR dues are $125 or $10.25 monthly. OKCMAR provides its members professional standards administration, member services (such as processing new members, conducting orientation, processing transfers and releases), education (your free CE), legislative advocacy, networking and information (the website, e-blasts and quarterly newsmagazine) and dues billing and collection services for OKCMAR as well as OAR and NAR. OKCMAR also pays all building expenses as well as professional services expenses (CPA, Auditors & legal) and the more mundane things like the utilities, insurance, building and equipment maintenance, lawn, property and payroll tax etc.
MLS fees which without all discounts are $600 per year ($50 monthly) with lockboxes $810 per year ($67.50 monthly). MLS fees pay for the MLS database, MLS Tech Support, MLS member services, lockbox and key administration, the MLS public sided site, MLS training, MLS accounting, MLS rules enforcement and rules compliance assistance, the R-Store, MLS billing and collection service for the broker-participants, online forms management, tax data, security controls, showing service & virtual tour creator, MLS fees also pay for the rental space it uses in the OKCMAR building. This rent was set in accordance to market rents through a professional appraisal.
MLS and OKCMAR have a staff division as well with a small group of staff being "shared" by both corporations. The shared staff completes time studies and then bills MLS for the staff time devoted to MLS. OKCMAR actually employs all the employees that work at OKCMAR. MLS pays OKCMAR an administrative fee for the staff it "leases" from OKCMAR. This staff includes: Broker & vendor Services Director, MLS accounting specialist, Rstore manager, MLS Help Desk manager, MLS reception/lockbox, 2 MLS technicians and IT specialist. The shared staff include myself, CEO, the Comptroller, the Chief Operations Officer, main receptionist and the Executive Assistant.
This is why there is one building, two corporations and shared staff. It is easy to understand how members can view that OKCMAR and MLS with shared space and staff are one entity however the corporations are run completely separately with separate article of incorporation, separate bylaws, separate operating accounts, separate Boards of Directors and by and large separate staff.
2 comments:
Dawn, having served on the MLS Board, I am aware of the two corporations, but for the longest time it was not common knowledge to the membership on the outside. I really appreciate your detailed description of how our association functions with the two entities. It is important that this type of communication to our members fosters a better understanding of where the money goes. I can also vouch for the expensive nature of the MLS programs we use, and in my communication with Realtors from other states they are amazed at what we get for the money.
Thank you Joe! A common misconception is that we can easily transfer funds between corporations. Not only is that not accurate or good practice, its also called tax evasion. Our members can be assured we are operating with NAR and IRS guidelines!
I too believe the value of the MLS far exceeds that of our competitors and many may not know that our MLS gets a great deal of national attention & accolades for its business model. In fact I was asked to submit an article for the NAR AE magazine and was recently quoted in US News & World Report.
This is all a result of the incredible leadership of our MLS, which by the way, included you! In fact many do not know that once you left the board you continued on the MLS R&D advisory group for two years helping to shape our future.
Post a Comment