Ht.: 
 
 \j> \£> ''J 
 
 economic development administration 
 
 technical 
 Assistance 
 
 r% ^ pROJECT 
 U.S. DEPARTMENT OF COMMERCE 
 
 ORGANIZING A 
 
 MINORITY 
 
 TRADE ASSOCIATION 
 
 
 INSTITUTE FOR MINORJY ItSltESS EIICATION 
 
 Howard University 
 
 
 NOVleiBJi 
 
 
 
 
A MANUAL 
 ON ORGANIZING 
 A MINORITY 
 TRADE ASSOCIATION 
 
 Prepared by 
 
 INSTITUTE FOR MINORITY BUSINESS EDUCATION 
 
 Small Business Guidance and Development Center 
 
 School of Business and Public Administration 
 
 Howard University 
 Washington, D. C. 
 
 i 
 
 October, 1970 
 
This technical assistance study was accomplished by professional con- 
 sultants under contract with the Economic Development Administration. 
 The statements, findings, conclusions, recommendations, and other data 
 in this report are solely those of the contractor and do not necessarily 
 reflect the views of the Economic Development Administration. 
 
 The research reported herein was performed pursuant to a contract with 
 the Office of Education, U. S. Department of Health, Education, and 
 Welfare. Contractors undertaking such projects under Government spon- 
 sorship are encouraged to express freely their professional judgment 
 in the conduct of the project. Points of opinions stated do not, 
 therefore, necessarily represent official Office of Education position 
 or pol i cy . 
 
TABLE OF CONTENTS 
 
 Page 
 
 FOREWORD 
 
 INTRODUCTION 1 
 
 BASIC CONSIDERATIONS 3 
 
 The Sponsor 3 
 
 The Team Approach k 
 
 The Trade to be Organized 5 
 
 RECRUITMENT 8 
 
 Locating Potential Members 8 
 
 Using Community Resources 10 
 
 Encouraging Participation 12 
 
 Building Confidence 13 
 
 Fol lowing Up \k 
 
 ORGANIZATION 16 
 
 The Organizational Meeting 16 
 
 Preparation 16 
 
 Format 17 
 
 Identification of Goals and Objectives 18 
 
 Name Selection 20 
 
 Constitution and Bylaws Committee 2?. 
 
 Committee Assignments 23 
 
Page 
 
 PROGRAM 2k 
 
 The Need 2k 
 
 Basics of Program Planning 2k 
 
 Long-Range Programs 25 
 
 LEADERSHIP 28 
 
 A Definition 28 
 
 Leadership and the Organizational Meeting 28 
 
 Sel f-Determination Within the Association 29 
 
 INCORPORATION 31 
 
 What Incorporation Means 31 
 
 Procedures of Incorporation 31 
 
 Certificate of Incorporation 32 
 
 FINANCE 3^ 
 
 Getting Started 3^ 
 
 Resources -- Where they are 3k 
 
 Continued Financing 36 
 
 APPENDIX 
 
FOREWORD 
 
 The Institute for Minority Business Education was established 
 to improve the flow of information and technical services to business 
 development centers and other institutions engaged in minority economic 
 development. As a component of the Howard University School of Business 
 and Public Administration, funded by the Office of Education, Department 
 of Health, Education and Welfare, the Institute will work to improve 
 the level of understanding of business and economic forces operating 
 in the minority community and develop tools and techniques for use by 
 Centers in improving their capability to deal with those forces. 
 
 This manual on "Organizing a Minority Trade Association" rep- 
 resents the first in a series of Management Assistance Manuals to be 
 distributed by the Institute. Trade Associations have been found to be 
 extremely beneficial to businesses of all sizes in every sector of the 
 economy. For various reasons minority businessmen participate to a 
 very limited extent in white-controlled trade associations. The fact 
 that viable trade associations do not exist on a wide scale in the 
 minority community has presented a considerable impediment to dis- 
 semination of information and services to minority busines c men with 
 common problems. Moreover, the absence of unified groups of minority 
 businessmen weakens the opportunity for improvement in their economic 
 position in the general economy. 
 
 Appreciation is expressed to Mrs. Louise Marsh for he' - investi- 
 gations, study and organization of the material available for use in 
 
this manual. This portion of the work was funded by the Economic 
 Development Administration, U. S. Department of Commerce. 
 
 This manual was written by Leonard M. Black, a member of the 
 Institute staff, with funds contributed by the Office of Education, 
 U. S. Department of Health, Education and Welfare. 
 
 Wi Iford L. White 
 Director, Small Business 
 Guidance and Development 
 Center 
 
 George H. Robinson 
 Executive Director 
 Institute for Minority 
 Business Education 
 
 September, 1970 
 
INTRODUCTION 
 
 A trade association may be defined as a nonprofit, cooperative, 
 voluntarily joined organization of business competitors designed to 
 assist members of its industry to deal with mutual business problems. 
 Minority business people, however, are accustomed to working alone. 
 Their business history usually reveals constant struggle. Until five 
 years ago, there were few places to turn for help when it was needed. 
 Consequently, we have seen businesses owned and operated by minority 
 group members go through various stages of fragmented and disorganized 
 existence with little or no hope of becoming established in the mainstream 
 of the American economy. 
 
 The late 1 960 ' s produced a growing interest in applying new 
 knowledge, on a more systematic basis, to the problems faced by the 
 relatively small number of minority entrepreneurs who had ventured into 
 the swiftly changing world of business and industry. The 'nterest devel- 
 oped largely as part of the national attack on poverty in recognition of 
 the need for minorities to develop viable economic resources. 
 
 Minority business ownership is increasing, but there is a need 
 for more sophistication. Minority businessmen, therefore, must focus on 
 the broader economic opportunities available in today's business world. 
 Trade associations can greatly assist emerging minority businesses, making 
 them competitive within the industry and creating a shell against forces 
 which tend to monopolize the industry. The adaptation of majority 
 business techniques -- such as trade associations -- to the activities 
 of minority business has had several results: 
 
 - 1 - 
 
- 2 - 
 
 --New ways of bringing business services to peopie 
 for whom they had been effectively unavailable 
 have been developed. 
 
 --New ways of informing public and private insti- 
 tutions of the economic problems of minority 
 people have been undertaken. 
 
 --Application of techniques and ideas which have 
 become part of the basic business operation in 
 such areas as: accounting practices, business 
 ethics, commercial and industrial research, trade 
 promotion, industrial relations, standardization, 
 and quality control has been encouraged. 
 
 --Realization of the necessity for governmental and 
 private organizations to work together in a coordi- 
 nated way if the overall objectives of minority 
 business development are to be accomplished has 
 been clearly established. 
 
 Trade associations nave proven their value to the ecoromic advance- 
 ment of majority-controlled businesses. They certainly would be no less 
 useful to minority businessmen. 
 
- 3 - 
 
 BASIC CONSIDERATIONS 
 
 The Sponsor 
 
 Organizations that provide services to individual minority 
 businessmen are ideally suited to undertake the promotion of a minority 
 group trade association. Business development centers and similar 
 organizations build up support and rapport within minority business 
 communities by providing viable services to the small businessman. 
 Much of the credibility of the organization is based on two principle 
 factors: 
 
 1. The range, accessibility, efficiency and 
 convenience of services provided, and 
 
 2. The people who provide those services. 
 
 The major considerations are that the sponsoring group has: 
 
 1. Support from the minority business community. 
 
 2. Credibility within the minority business 
 communi ty. 
 
 3. Rapport with minority businessmen, especially 
 the leaders or more successful minority 
 
 bus inessmen. 
 
 k. Empathy for the minority business community. 
 The following are examples of potential sponsoring groups: 
 
 1. Business Development Centers. 
 
 2. Economic Development Organizations. 
 
 3. National Business League Chapters. 
 k. Urban League Chapters. 
 
 5. Private Foundations. 
 
- k - 
 
 This list of organizations is illustrative and does not limit the 
 successful participation of other types of organizations that may wish 
 to promote a minority group trade association. However, positive and 
 active involvement with minority businessmen is an essential criterion 
 for sponsorship of a minority group trade association. 
 
 The Team Approach 
 
 The sponsoring group should be aware that much effort must be 
 devoted to the building of confidence. The minority businessman must 
 have confidence in the sponsoring group. He must have confidence in the 
 trade association's capability to do something for him as an individual. 
 He must have confidence in the people who make contact with him in 
 recruitment efforts. 
 
 The successful promotion of a trade association can be furthered 
 by involving minority business leaders in organizational tasks. It is 
 not necessary that all of the persons selected to work with the sponsoring 
 group be the most successful businessmen from the trade. However, it is 
 necessary that each one have the respect of the potential members of the 
 proposed trade association. 
 
 A wel 1 -oriented and effective business development organization 
 that has achieved status in the minority business community because of 
 its performance and its personnel, combined with a select group of 
 minority businessmen who possess leadership capabilities and have the 
 respect of their peers, will form a team of developers that can be highly 
 effective in promoting a minority group trade association. 
 
- 5 
 
 The Trade to be Organized 
 
 The selection of a business or trade group to be organized into 
 an association should be a carefully planned exercise. The implemen- 
 tation of that plan by the sponsoring group must be comprehensive and 
 well coordinated. Cursory knowledge or hearsay information about the 
 problems and needs of a specific business group will not provide suf- 
 ficient data. A sponsor should have reliable answers to the following 
 questions : 
 
 1. Is there a strong enough representation 
 of minority businessmen within the same 
 trade group to provide a sufficient number 
 of members for a trade association? 
 
 2. What are the needs of individual businessmen 
 within that trade group? 
 
 3. Generally, what are the needs of the total 
 trade group? 
 
 k. Have there been efforts in the past to 
 organize minority group members doing 
 business in this trade area? If so, what 
 were the results? What problems were 
 encountered? Why did previous efforts fail? 
 
 It cannot be assumed that even a strong organizational effort will 
 
 result in a 100% response by the business or trade group. Therefore, 
 
 tot? 1 numbers from which to draw are important. A trade association 
 
 with ten or fifteen members would not be effective. Approximately *+0 to 
 
 50 representatives of the trade will be needed to get an association 
 
 underway, and this number may be only 30 to 50 percent of the total number 
 
 of persons in that trade. Once the association has become operational 
 
 and achieved some status in the community, new members may be encouraged 
 
 to join. Even so, efforts to recruit should not be relaxed at any time. 
 
- 6 - 
 
 The sponsoring group or members of the trade association develop- 
 ment team may have been involved with potential members through business 
 service activities such as the following: 
 
 a. Counsel ing 
 
 b. Management training 
 
 c. Preparing loan packages 
 
 d. Economic development planning 
 
 e. Serving on community economic advisory boards. 
 
 Activities such as those listed above provide the kinds of information 
 needed to gain insight on whether there exists in the community a need to 
 reinforce the capabilities of individuals doing business within a specific 
 trade or business. Following are other methods of gathering information 
 that may be employed by the sponsoring group: 
 
 1. Contact the local Small Business Administration 
 office and other local business development centers 
 for: 
 
 a. The names and locations of minority 
 businessmen who have sought financial 
 or technical assistance doing business 
 in the area of the proposed association. 
 
 b. The identity of persons who have sought 
 assistance to enter into the business 
 field in the area of the proposed asso- 
 ci ation . 
 
 2. Contact banks and other financial institutions for 
 the names of minority businessmen who have sought 
 financial assistance, especially those seeking 
 
 cri si s assi stance. 
 
 Once the sponsoring group has gathered relevant information for 
 
 the trade or business to be organized, an assessment should be made based 
 
 on the following factors: 
 
 1. The needs of the proposed trade association, as a 
 group, and the ways in which those needs can be 
 met through services provided by the trade asso- 
 ciation. 
 
- 7 - 
 
 2. Ways in which the proposed trade association, 
 through its potential benefits to individual 
 members, can provide expanded opportunities to 
 the general community. 
 
 3. The potential support of public and private 
 community organizations and institutions. 
 
 In planning for the formation of a trade association, emphasis 
 should also be placed on the rewards and benefits for the individual 
 businessmen -- now. No matter how obvious are the needs of the business 
 group and the desire of a number of potential members to organize, the 
 combination of need, interest and numbers is not enough to insure the 
 successful formation of a trade association. Once the man is in the 
 trade association -- and his greatest motivation will be because of per- 
 sonal benefits -- a total membership program can be developed. 
 
- 8 - 
 
 RECRUITMENT 
 
 Locating Potential Members 
 
 The idea of cooperative, voluntary action for the benefit of the 
 entire trade -- or a significant segment of it -- is one that will re- 
 quire some selling. A program of action specifically related to the 
 problems and experiences of each prospective member will go far towards 
 encouraging the formation of an association. An ideal situation would 
 be that individual minority businessmen have asked for the help of the 
 sponsor in the organization of a minority trade association. Usually, 
 however, this will not be the case. 
 
 The following approach to locating the often obscure small minority 
 businessman is a comprehensive one which can be modified to suit the needs 
 of the development team: 
 
 1. Use a local classified telephone directory to 
 prepare a listing of all firms, places of 
 business, and individuals who are listed under 
 the category of the proposed association. In 
 this exercise the team of persons selected to 
 act as the organizers or developers can be quite 
 valuable if some of them have been involved in 
 business in the city. A separate list should be 
 compiled which identifies those businesses that 
 are known to be owned by minority group members. 
 
 2. Secure a street map of the city. These are 
 usually available from the city's Department of 
 Engineering or City Planning Commission offices. 
 The map mav be used as follows: 
 
 a. Using known boundaries, real or imaginary, 
 circle the sections of the city which have 
 large concentrations of minority populations. 
 
 b. Assign members of the team to identify the 
 businesses owned by minority members in 
 those minority neighborhoods which they 
 know best. 
 
- 9 - 
 
 c. Stick pins in the map to identify the 
 locations of known minority-owned 
 businesses within the trade for the 
 proposed association. 
 
 d. The map may also be used to identify 
 the physical location of additional 
 minority businessmen as each is located. 
 
 It is likely that after the listing taken from the telephone 
 directory has been gone through by the organizing team, there will remain 
 some businesses known to be white-owned, as well as some about which 
 little is known concerning their ownership. 
 
 The organizing team will be required to spend much time in the 
 street making contact with the businessmen. In addition to meeting with 
 the already identified minority businessmen, organizers will have to 
 determine the ownership of other businesses within the area they are 
 canvassing. A word of caution here: There are many businesses located 
 in mir.ority neighborhoods that have blacks or other minority members 
 "fronting" for them. It is often necessary to ask bluntly and directly 
 whether a particular business is black-owned. 
 
 The trade group worked with will determine the techniques that must 
 be ao; lied to the recruitment effort. Listing a business in the classi- 
 fiec telephone directory is a form of advertising. Advertising costs are 
 usurHy high. For some minority businessmen, the cost might even be pro- 
 hibitive. It is also reasonable to assume that in some trades or profes- 
 sional areas there will be businessmen who operate out of the trunks of 
 thei " automobiles, from their homes or apartments, or who share space in 
 a business establishment of another sort. The ability of members of the 
 organizing team will be invaluable in locating businessmen not listed in 
 conventional directories. Also, some businesses have only pay telephones 
 
-lO- 
 
 in their establishments. Naturally, business listings are not carried 
 in the directory for pay telephones. 
 
 A valuable aid in locating minority businessmen in some cities 
 is the City Directory of Black Businesses .* It is highly likely, however, 
 that even where there is a city directory of black business, there will 
 still be businessmen unlisted. These, too, must be found. Not all 
 minority businessmen have situated themselves in minority neighborhoods. 
 Some are scattered in mixed neighborhoods, and a few are located in pre- 
 dominately white neighborhoods. The organizing team must use all avail- 
 able resources to locate every person in the community operating a 
 business in the selected trade area. 
 
 Using Community Resources 
 
 The organizers of a trade association can effect more productive 
 recruitment of potential members by using other community resources. 
 Organizations and individuals engaged in providing meaningful services 
 to the community should be considered potential contact sources. In 
 addition to assisting in getting the location of minority businessmen, 
 commur i ty groups can help publicize the effort and sell the program. 
 
 Personal contact and contact by mail and telephone with churches, 
 soci-'i clubs, civic groups, and community service organizations can offer 
 opportunities to explain the general purposes of organizing the associ- 
 ation. Also, since the role of the community is vital to the expansion 
 
 See Appendix A for a listing of some cities for which there are black 
 business directories. 
 
- 11 - 
 
 of business efforts, it will serve as greater encouragement to the small 
 businessman to know that the community supports the organization of the 
 trade association. 
 
 The following are examples of what can be requested through 
 commun i ty resou rces : 
 
 1. Churches can be asked to carry announcements 
 in their newsletters or in the Sunday pro- 
 grams, and to post notices on their bulletin 
 boards . 
 
 2. Clubs and civic groups can be requested to 
 make similar announcements to their member- 
 ship at regular meetings. 
 
 3. All community groups can be asked to circulate 
 the information that the sponsoring group is 
 actively trying to locate all minority group 
 members doing business in the selected trade 
 area. 
 
 k. Spot announcements can be carried on radio and 
 television stations which cater to minority 
 group audiences. 
 
 In addition to the above, there are other established community 
 
 resources such as the following which can aid in locating minority 
 
 busi nessmen : 
 
 1. The local N.A.A.C.P. Chapter 
 
 2. The local Urban League Affiliate 
 
 3. Organizations of other minority groups such as 
 the Spanish speaking, Chinese, Indian, etc., 
 where appropriate. 
 
 k. Newspaper offices, especially advertising 
 departments. 
 
- 12 - 
 
 Encouraging Participation 
 
 Members of the organizing team play a key role in the promotion 
 of a trade association. Beyond the task of locating potential members 
 is the task of convincing them that the proposed trade association holds 
 numerous benefits for them. These are some guidelines and procedures 
 that the organizing team may employ: 
 
 1. Whenever possible, make a telephone contact 
 before a personal one. 
 
 2. Do not use the "hard sell" approach at the 
 initial contact with the prospective mem- 
 ber. Of course, if the businessman is an 
 old friend, the judgment of the organizer 
 would determine the intensity of the contact. 
 
 3. Do not go into the place of business armed 
 with a form and determined to record a lot 
 of data about the businessman and his 
 business operation. Some notes might be 
 helpful for follow-up contacts. However, 
 these notes can generally be kept mentally 
 until outside of the establishment. In the 
 case of a new or unlisted business, inform 
 the businessman of your desire to record 
 his name, his trade name, address and tele- 
 phone number. 
 
 k. The organizer should inform each businessman 
 contacted about the purpose of the visit. 
 The organizer should make the minority busi- 
 nessman aware of the economic potential of 
 the black consumer market and that part of 
 the purpose of the trade association is to 
 help the minority businessmen capture a sig- 
 nificant segment of that market. 
 
 5. No matter how run-down the appearance of the 
 businessman's establishment and whatever the 
 state of affairs inside, do not approach the 
 businessman negatively. In spite of how the 
 businessman looks, talks, or acts, his par- 
 ticipation in the trade association is needed. 
 You are there to help him decide to help him- 
 self, not to pass judgment. 
 
- 13 - 
 
 6. At all times, the approach of organizers 
 should be warm, friendly and informal. 
 
 7- Every businessman contacted should be 
 
 informed about the time, place, and date 
 of the first meeting of the trade asso- 
 ciation. (The organizational meeting is 
 covered in detail in another section.) 
 The organizer should seek some kind of 
 commitment from the businessman to attend 
 the organizational meeting. 
 
 Bui lding Conf i dence 
 
 Much of the activity leading up to and beyond the organizational 
 meeting should focus on confidence building. The minority businessmen 
 contacted must have confidence in the organizers, the sponsor, and the 
 philosophy of the trade association before they will make any kind of 
 commitment, silent or verbal, to support the proposed association. 
 
 Building confidence is a gigantic task. There is no one formula 
 for how it is done. Yet it is not a matter of chance. The task can best 
 be met by a careful selection of organizers for the trade association. 
 Having persons who are in business or who have extensive business back- 
 grounds as part of the organizing team gives credibility to the effort. 
 Businessmen frequently know of the struggles and problems of other busi- 
 nessmen. If by chance there should be no members of the minority busi- 
 ness community serving as organizers, the sponsoring group should do 
 everything possible to have well-known and respected businessmen accom- 
 pany members of the organizing team on their initial contacts with pros- 
 pective members. 
 
- lit - 
 
 Fol lowi ng Up 
 
 After contact has been made with prospective members, it is 
 essential that communication be continued. Almost from the outset of 
 organizing activities, the businessmen will demand, sometimes silently, 
 that the sponsoring group "show them something". That "something" may 
 frequently be: 
 
 1. Your skills at organizing. 
 
 2. Your commitment to helping the individual 
 businessman . 
 
 3. Your capabilities and resources. 
 k. Your leadership ability. 
 
 5. Your understanding of him and his 
 busi ness . 
 
 6. Your determination to follow through. 
 
 Use of an information kit is an effective follow-up technique. 
 The information kit can be used to: 
 
 1. Further stimulate the businessman to 
 become active in and lend support to 
 the proposed association. 
 
 2. Show the purposes, advantages and merits 
 of being a member of the association. 
 
 3. Present the format and agenda of the 
 organizational meeting. 
 
 k. Confirm the date, time, and place of 
 the organizational meeting. 
 
 At least three or four days before the organizational meeting is 
 
 to be held, each prospective member should be contacted. A telephone 
 
 call and a letter will be appropriate. 
 
- 15 - 
 
 The organizing team should keep in mind that throughout their 
 contacts with prospective members -- in addition to stressing partici- 
 pation in the proposed trade association -- they should make known their 
 willingness to help with the organizational meeting. Some suggestions 
 for assistance which might be offered are listed below: 
 
 1. Organize a car pool to take persons to and 
 from the meeting. 
 
 2. Have a wel 1 -publ ici zed telephone number that 
 any prospective member can call at any time 
 for information or to talk about his business 
 or his problems. 
 
 3. Since the meeting will most likely be during 
 non-business hours, try to organize child- 
 care or babysitting services. This service 
 might be especially welcome if there are 
 females involved in the trade group. 
 
 k. Mail out complimentary copies of relevant 
 trade magazines or other publications to 
 prospective members. 
 
- 16 - 
 
 ORGANIZATION 
 
 The Organizational Meeting 
 
 Once the preliminary groundwork has been done, the next step is 
 the organizational meeting. The success of that meeting will be decided 
 by three principal factors: 
 
 1. CONTACT — The number of people attending 
 
 the organizational meeting. 
 
 2. CONTENT -- The format and substance of that 
 
 meeting. 
 
 3. CONDUCT -- The management of the meeting. 
 Activities leading to the meeting must be carefully planned. If 
 
 there is poor coordination, or poor planning, contact, content, or 
 conduct may be seriously affected and the trade association will encounter 
 difficulty getting started. The planners for the organizational meeting 
 should keep in mind that the small businessman is often running a one-man 
 operation or is frequently understaffed. He must be shown that any new 
 and unfamiliar activity will be worth the investment of his time and 
 energy. The success of the program requires that the first meeting encom- 
 pass points which will stimulate discussion from the floor and encourage 
 genuine participation by the group. 
 
 Preparation . If any of the persons responsible for planning the 
 organizational meeting are themselves engaged in the trade of the pro- 
 posed association, it will be an advantage in analyzing the data collected 
 by the trade association development team and translating it into a 
 meaningful meeting format. However, information assembled through the 
 team's personal contacts with persons doing business in the trade, and 
 
 
- 17 - 
 
 through contacts with other community information sources, will provide 
 the background knowledge to make the concept of an association acceptable 
 to prospective members. Knowing the needs of those in the trade is not 
 enough. The planners of the organizational meeting must have knowledge 
 of specific problems that can be handled most effectively by collective 
 action. 
 
 There should be individuals charged with the responsibility of 
 planning and conducting the organizational meeting. They could be mem- 
 bers of the sponsoring group, members in the trade of the proposed 
 association who have previously attempted to organize an association, 
 or some combination. 
 
 Format . Small businessmen frequently think of themselves as inde- 
 pendent. Accepting that one of the major objectives of organizing the 
 trade association is to encourage voluntary cooperative action among 
 minority businessmen, it must also be accepted that the organizational 
 meeting should be designed and conducted in a manner that will lessen 
 the feeling of independence from the outset. 
 
 The meeting may be conducted in a number of ways. However, the 
 selected format will have to be based on the background information 
 available about the compatibility of the individuals involved and the 
 nature of the trade or profession concerned. Listed below are some fac- 
 tors which will help determine certain aspects of the meeting: 
 
 1. Will this group be composed chiefly of men 
 or women? 
 
 2. What are their customary hours of business? 
 3- What are their busiest days? 
 
- 18 - 
 
 4. What are their busiest seasons of the 
 year? 
 
 5. Would the nature of this group best 
 respond to experts in their field? 
 
 6. Would the group respond to some social 
 contact combined with a business 
 meeti ng? 
 
 7. Would having to pay for the meal defeat 
 the success of a dinner or luncheon 
 meeting? 
 
 Whatever form the organizational meeting may take -- a dinner or 
 
 luncheon meeting, a strictly business affair, one with well-known speaker 
 
 or one utilizing only the community leaders of that trade -- it should be 
 
 carefully planned. Those present should get clear insight on: 
 
 1. What active membership in the association 
 can mean. 
 
 2. What they can contribute to its success. 
 
 3. What their obligations will be. 
 
 h. What they must do to make the association 
 a real i ty . 
 
 Attitudes of suspicion and skepticism can be expected from some 
 
 businessmen. This is normal for minority businessmen because of their 
 
 experience in the broader economic society. However, many of their 
 
 fears and misgivings can be allayed through the efficiency of activities 
 
 conducted to prepare for this meeting. 
 
 Identification of Goals and Objectives 
 
 Every trade association has among its basic principles the aim of 
 increasing the earnings and profits of its members. How this general 
 goal is to be expressed in terms which apply to the membership will be 
 
- 19 - 
 
 determined largely by the current state of the trade. It will be 
 
 necessary to focus also on several statements of goals and objectives 
 
 which may serve as guidelines for the emerging association: 
 
 --to improve the relationship between member 
 firms and the general public. 
 
 --to enlighten and educate the public about 
 the usefulness and value of services ren- 
 dered by the member firms. 
 
 --to increase members 1 effectiveness in the 
 industry by supplying vital information 
 and providing legal, technical, financial 
 and management advice whenever possible. 
 
 --to encourage the application of the highest 
 ethical standards for the business estab- 
 lishments of its members. 
 
 --to keep members informed of developments in 
 their field of business. 
 
 — to establish appropriate accounting procedures 
 and other business practices for its members. 
 
 --to engage in group advertising. 
 
 --to provide a useful vehicle for cooperative 
 supply procurement among member shopowners. 
 
 --to develop credit unions, group hospital 
 and health insurance, business insurance 
 and bonding. 
 
 However stated, the overall purpose of improving business conditions for 
 its members as determined by the requirements of the particular trade 
 should be the overall objective stated within the goals of the association 
 
 There are other areas of business which should be prepared by the 
 organizers of the meeting and presented to the assembled group. Each of 
 the following activities manifests opportunities for discussion from the 
 floor and will give the members a meaningful role in shaping the asso- 
 ciation from the very beginning: 
 
20 - 
 
 1. The suitability of various office 
 locations for the association. 
 
 2. The selection of positions to be 
 filled as elected leadership of the 
 associ ation. 
 
 The selections of leadership positions to be filled as an agenda 
 
 item with discussion from the floor has multiple advantages. The most 
 
 significant is that this process will give each member an opportunity 
 
 to more thoroughly understand the function of each office. Once the 
 
 positions to be filled have been selected, a nominating committee will 
 
 be responsible for preparing a slate for those positions. 
 
 Name Selection 
 
 One of the early activities of the team organizing the trade 
 association, prior to the organizational meeting, should be to prepare 
 a list Of suggested names for the association to submit to the members 
 for their consideration. The names suggested should be descriptive, 
 easy to remember, and distinctive. 
 
 There are several ways to involve the membership in naming the 
 association once an initial list of suggested names has been presented. 
 Those members present might eliminate all but two or three cf the sug- 
 gested names. The remaining names might then be circulates among all of 
 the potential members to have each of them vote for his choice. The 
 name receiving the greatest number of votes would be the selection. Thi: 
 approach might stimulate participation by more businessmen and would be 
 a type of early group involvement. 
 
 A second approach might be to have the newly organized trade 
 association sponsor an essay writing contest for high school students. 
 
- 21 - 
 
 This approach will require more planning and coordination as well as a 
 considerable amount of time, but it could be quite effective at involving 
 the community in the initial stages. The public relations mileage cer- 
 tainly would not hurt the association. Following are some suggestions 
 as to how the essay contest might be conducted: 
 
 1. Have the members of the association screen 
 out al 1 but several of the names suggested 
 by the acting planning committee. 
 
 2. Prepare a sufficient number of posters 
 (silk-screening is a simple and inexpensive 
 process) to place one in each potential 
 member's place of business. The posters 
 should show: 
 
 a. The purpose of the contest. 
 
 b. Final date for entries (no more than 
 30 days) . 
 
 c. Prizes. 
 
 d. Who is eligible (high school students). 
 
 e. What are the rules (limit number of 
 words -- no less than 100; no more 
 than 500. Someone has to read these.) 
 
 f. Where to return essays for the contest. 
 It might provide some motivation to have 
 each member and potential member's place 
 of business serve as an essay turn-in 
 
 po i n t . 
 
 It would be worthwhile to the emerging organization to involve the local 
 press -- if possible -- and other community organizations such as 
 churches, YMCA's, YWCA ' s , community centers, etc., in announcing the 
 contest . 
 
- 22 - 
 
 Constitution and Bylaws Committee' "' 
 
 The constitution and bylaws committee should be appointed almost 
 immediately so that it can begin its work. I t wi 1 1 be necessary for the 
 members to vote on the proposed constitution and bylaws prior to the 
 election of the officers who will serve under them. 
 
 The constitution of a group is a written instrument embodying its 
 fundamental rules and provisions which describe the structure, organi- 
 zation, manner in which power is distributed, broad powers, and the 
 guarantee of certain rights to its members. A constitution will vary to 
 suit the needs of the particular group. However, there are some basic 
 components of any constitution. A description of those primary components 
 (articles) fol lows : 
 
 Article I - Name, office (location), organizational 
 year. 
 
 Article II - Purpose of the association. 
 
 Article III - Memberships; the general qualifications 
 for membership; sets dues amounts; pro- 
 tection of members from assessments 
 without their consent; sets forth voting 
 rights; provides for the admission, 
 suspension and expulsion of members. 
 
 Article IV - Establishes the size (limits) of the 
 
 board of directors and number of elec- 
 tive offices. Makes provisions for 
 employing executives or specialists 
 who will not be considered officers 
 and who may receive compensation for 
 their services. States that officers 
 and directors shall be elected and 
 shall serve in manners set forth in 
 the bylaws. 
 
 "See Appendix B for sample constitution, Appendix C for sample bylaws. 
 
- 23 - 
 
 Article V - Committees; standing committees 
 established who shall serve on 
 the executive committee, states 
 requirements for other committees, 
 and the process for the selection 
 of committee members. 
 
 Article VI - Meetings; meetings of the directors; 
 meetings of the membership; regular 
 and special meetings; presiding 
 officers and quorums. 
 
 Article VII - Amendments; procedures for changing 
 
 any part or parts of the constitution. 
 
 The bylaws deal with the same topics as the constitution but in 
 
 terms of actual day-to-day operations. The bylaws are the "operating 
 
 instructions" for the constitution -- the statement of rules by which 
 
 the association conducts its business. 
 
 Committee Assignments 
 
 In addition to committees for drafting a constitution and bylaws 
 and nominating officers, there may be several other functions which can 
 be performed by committees. However, the burden of work will invariably 
 fall upon those same persons who recruited members, organized the 
 meeting, and otherwise came forward as leaders in the promotion of the 
 trade association. Nonetheless, a structure should be present that will 
 enable other members to emerge as leaders through association activities, 
 
 All persons on committees will not have equal amounts of time, 
 motivation, or talent. All will not be able to meet regularly. Some 
 people will have to do almost all the work. The fledgling trade associ- 
 ation will probably grow increasingly dependent on the sponsoring group 
 during the first year. 
 
2k - 
 
 PROGRAM 
 
 The Need 
 
 Programs that will prove their usefulness to members of a trade 
 association must be initiated immediately. A viable program must be 
 developed if the association is to survive and attract new members. The 
 productivity of the trade association is directly proportional to the 
 member effort, time, and money invested. Since none is in infinite, 
 supply, activities and programs (long- and short-range) will have to be 
 selected carefully. 
 
 There is no "canned" procedure for program planning that can be 
 adopted by every trade association. Each organization has its own 
 purpose and problems. Nevertheless, by following certain logical steps, 
 a trade association can assure that its plan of operations is solidly 
 based and developed in an orderly manner consistent with the needs of the 
 association and the community. 
 
 Basics of Program Planning 
 
 Here are six basic steps in program planning: 
 
 1. Decide in general terms what you want 
 to accompl i sh. 
 
 2. Take a look at what you want to work with. 
 
 3- Determine what will happen if no exceptional 
 action is taken. 
 
 k. Decide very specifically what you want to 
 accomplish. Establish your priorities. 
 
- 25 - 
 
 5. Figure out, also very specifically, how 
 you can get these desired results. You 
 must include a close approximation of 
 the required resources. 
 
 6. Follow up with an effective program of 
 reporting, performance analysis, and 
 community feedback. 
 
 In developing a program plan as outlined before, the planners 
 must place emphasis on time frames in which objectives are to be accom- 
 plished. The first step in program planning has been accomplished by 
 the adoption of goals and objectives as discussed earlier. The objectives 
 decided upon, no matter how general, should have quantities assigned to 
 them. The statement, "To establish the public image of the^ trade", is 
 not a decision or a plan. It is a hope. But the statement, "We will 
 design and use a logo on decals to be displayed in members' places of 
 business, on stationary and on a newsletter", is a decision and a plan -- 
 or at least the beginning of one. Each planning statement must be accom- 
 panied by a time element, such as: to be implemented in three months and 
 completed within 60 days of implementation. 
 
 Long-Range Programs 
 
 There is among minority organizations a significant need for long- 
 range programs. Most of the services which a trade association can 
 provide generally fall into five major categories: 
 
 A. Services which improve the image of the trade to the general 
 publ i c: 
 
 1. Design and display of a logo. 
 
 2. Upgrading the appearance of business 
 establ i shments . 
 
- 26 
 
 3. Setting standards of dress for employees. 
 
 B. Services which improve the abilities and capabilities of 
 the individual businessman to exist productively within 
 the economic sector: 
 
 1. Providing legal consultation and legal 
 servi ces . 
 
 2. Providing accounting services. 
 
 3. Establishing standardized accounting and 
 bookkeeping procedures. 
 
 k. Utilizing group or large quantity buying 
 of suppl ies . 
 
 5. Conducting management technique workshops 
 and seminars. 
 
 6. Setting up a trade library. 
 
 C. Services which provide technical upgrading to the employees 
 of individual business establishments: 
 
 1. Distribution of a trade newsletter. 
 
 2. Making technical staff training programs 
 avai 1 able. 
 
 3. Providing employee counseling and labor 
 rel at ions . 
 
 D. Services which create attitudes of confidence within the 
 consumer markets: 
 
 1. Group advertising in newspapers, on radio 
 and television. 
 
 2. Involvement in community affairs. 
 
 3- Establishing positive relationships with 
 community social and civic organizations. 
 
- 27 - 
 
 Services which focus primarily on community problems which 
 directly or indirectly affect the businessman. The 
 amelioration of these problems will provide significant 
 benefit to the community, 
 
 1. Coping with conditions of physical deterioration 
 in the communi ty. 
 
 2. Addressing the problems of crime in the 
 communi ty. 
 
 3. Engaging in programs of training and employment 
 of youth. 
 
- 28 - 
 
 LEADERSHIP 
 
 A Def ini tion 
 
 In the broadest sense leadership refers to that process whereby 
 an individual directs, guides, influences, or controls the thoughts, 
 feelings, or behavior of other human beings. Basically, there are 
 five factors which tend to influence leadership behavior and the 
 development of leadership patterns. They are: 
 
 1. The type of job to be done. 
 
 2. The personalities of those vying for leadership 
 posi tions . 
 
 3. The personality of the group which determines 
 who its leaders shall be. 
 
 k. The sanctions, by virtue of group consent 
 and due process, at the leader's disposal. 
 
 5. The capacity of the group to make decisions. 
 
 Leadership and the Organizational Meeting 
 
 An effective trade association will require the enthusiasm and 
 skill of its members to maintain operation. A strong trade association 
 will require the support of the community to effect change. A viable 
 trade association will require a commonality of purpose among its members. 
 A surviving trade association will require that the environment of the 
 association be free of dictatorships, cliques, power struggles, suspicions 
 and other kinds of negative group behavior. Only the members of the 
 association in their interpersonal relations with one another can deter- 
 mine what will be the attitude of the group and the environment of the 
 associ ation. 
 
- 29 - 
 
 The stage will be set from the first meeting -- the organizational 
 meeting. The attitude of the group will be influenced by the efficiency 
 and suitability of that meeting. The environment of the association 
 will be influenced by the relevance of content to those assembled. The 
 leaders will be identified by the relationships established prior to, 
 and during, the initial meeting. Those persons who were most active in 
 organizing the trade association and who are members will have identified 
 themselves in terms of leadership potential and In terms of their personal 
 commitments to the association. 
 
 Sel f-Determi nation Within the Association 
 
 There are no short-cuts to the establishment of a self-sustaining 
 trade association. That the processes of organization have been success- 
 ful is not indicative of the potential continued growth and meani ngful ness 
 of the emergent structure. The trade association will require intense 
 support from the sponsoring group. Much of the work to be done will 
 probably have to be initiated by the sponsors. 
 
 The lines of communications between the sponsoring organization 
 and the trade association should be strong, accessible, and open. The 
 leadership of the association will play a major role in insuring that 
 such is the case. The organizers of the trade association, and the spon- 
 soring organization must work towards structuring the trade association's 
 development through the association's leadership. The officers of the 
 association must have the respect of the membership and rapport with the 
 sponsors . 
 
 Self-determination as a way of life for the trade association may 
 be some time in the making. However, those values and principles of 
 
- 30 - 
 
 organization which will provide the association with the capability to 
 make intelligent decisions about its existence, and allow its leaders 
 to work toward the development of self-determination, may be summarized 
 as fol lows : 
 
 1. Members of the trade association will more 
 fully understand those ideas they help to 
 formulate . 
 
 2. Group decisions will receive more support 
 than those decisions which are a result of 
 autocratic edict imposed by the sponsoring 
 organization even though the best interests 
 of the trade association are believed to be 
 served. 
 
 3- Leadership and its development must draw 
 upon all available human resources. The 
 sponsoring organization should not attempt 
 to dominate the trade association but must 
 provide every opportunity for members of 
 the association to express any and all 
 leadership potential that exists. 
 
 k. Self-reliant individuals will be developed 
 through the application of the democratic 
 process within the association. The sponsors 
 can not assume that the membership will 
 accept that the sponsors know better than 
 the members what should be done within the 
 association. On the contrary, the support of 
 the leadership as the chief vehicle of com- 
 munications will enable a democratic environ- 
 ment to exist. 
 
 5- The democratic process will contribute to the 
 building of a self-sustaining association. 
 Members must feel that it is their trade asso- 
 ciation, not the sponsors. Therefore, morale 
 will be higher. Participation will be more 
 active and growth can take place. 
 
 6. There will be differences among members within 
 the association. This can be expected if there 
 is to be progress. The principles of democratic 
 leadership allow for differences among members. 
 However, differences between the sponsor and the 
 association will retard progress or might even 
 prove to be fatal to the association. 
 
- 31 
 
 INCORPORATION 
 
 What Incorporation Means 
 
 Incorporation of the trade association is advisable. Generally, 
 the functions of the trade association are quite related to the functions 
 of any other business enterprise. As a nonprofit corporation, it be- 
 comes possible for the association to share in the benefits of existing 
 as a corporate structure without being affected by some of the disadvan- 
 tages of corporate businesses. 
 
 A corporation is a legal entity, separate and apart from its 
 directors, officers, members or employees. A corporation may carry on 
 the business for which it was formed, may own property, make contracts, 
 sue and be sued in its own name. A corporation may live indefinitely; 
 it is unaffected by the death or incapacity of its directors, officers, 
 members of employees. By incorporating, the trade association will: 
 
 1. Establish itself as a legal entity, thus 
 removing the possibilities of individual 
 responsibility or liability for the actions 
 of the trade association; arid 
 
 2. Provide continuity for the association which 
 does not depend on the continued services of 
 a particular individual. 
 
 Procedures of Incorporation 
 
 It is important to the process of completing die organization of 
 the trade association that at the organizational meeting, a committee, 
 under the chairmanship of a steering committee member, be established to 
 initiate incorporation procedures immediately. In order to incorporate 
 
- 32 - 
 
 it is necessary to procure a charter of certificate of incorporation 
 from the state. The requirements may vary from state to state, but the 
 process will generally require a group to: 
 
 A. Consult an attorney who will refer to the pertinent 
 state statutes to assure full compliance with the law. 
 
 B. Draw up the Articles of Incorporation. 
 
 C. Require (in some states) that the constitution and 
 bylaws of the petitioner accompany the Articles of 
 I ncorporation . 
 
 D. File for a corporate charter. 
 
 Certificate of Incorporation 
 
 Most states require that a certificate of incorporation contain 
 the fol lowing: 
 
 A. CORPORATE NAME. You cannot select a name that too 
 closely resembles that of an existing corporation. 
 The name must include words or abbreviations that 
 indicate it is a corporation, such as Corporation, 
 Corp., Incorporated, Inc. 
 
 B. PURPOSE or OBJECT CLAUSE. This is the most important 
 clause as it tells the purpose for which the corpor- 
 ation is organized and what its business purposes are. 
 
 C. LOCATION. The location of the Corporation, including 
 street and number of its initial registered office. 
 
 D. AGENT. The name and location of its initial registered 
 agent for service or process. 
 
- 33 - 
 
 E. MEMBERSHIP. Statements which identify the regulation 
 and rights of membership. 
 
 F. DURATION of the Corporation. 
 
 G. INCORPORATORS. The name and address, including street 
 and number, of each incorporator. Most states require 
 at least three. 
 
 H. DIRECTORS. The number of directors constituting the 
 initial board of directors and the names and addresses, 
 including street and number, of the persons who are to 
 serve as the initial directors until the first meeting 
 or until their successors are elected and qualified. 
 
- 3** - 
 
 FINANCE 
 
 Getting Started 
 
 The amount of money required to get an association started is 
 difficult to estimate. The kinds of resources available to the sponsor- 
 ing group or members of the trade group will determine what is needed to 
 subsidize the processes of organization. Before the first steps of 
 organizing a trade association have begun, the sponsoring group should 
 determine: 
 
 A. What will be the approach to organizing a minority 
 trade association? 
 
 B. What is the commitment of the sponsoring group? 
 
 C. What resources are available within the sponsoring 
 group to aid the project? 
 
 D. What additional resources are needed? 
 
 E. What resources can be secured from the general 
 communi ty? 
 
 F. How can money be acquired to purchase items and/or 
 services which cannot be supplied on a volunteer 
 or gift basis by available resources? 
 
 Resoj rces -- Where they are 
 
 \lmost every large metropolitan area has, either in its midst or 
 nearbv, a reservoir of resources. The major tasks confronting a sponsor- 
 ing oroup of a trade association with regard to community resources will 
 be: 
 
- 35 - 
 
 A. To identify those resources in the community which 
 might be utilized to aid the organization of a 
 trade association. 
 
 B. To mobilize those resources once identified. 
 
 C. To coordinate those resources. 
 
 D. To locate supplemental capabilities to aid the 
 organizational process. 
 
 Although specific community resources may vary from city to city, 
 the kinds of aid required will generally determine what the prime sources 
 of supply are. For example: 
 
 A. Meeting Places 
 
 Local Churches 
 
 College or University Facilities 
 
 Restaurants 
 
 Hotel or Motel Meeting Rooms 
 
 Community Rooms in Private Business Establishments 
 
 B. Printing Services 
 
 Local Vocational High School 
 Community Colleges 
 Vocational /Techni cal Colleges 
 Community Social Service Centers 
 Private Business 
 
 C. Manpower for Organizational Tasks 
 
 Colleges (Students) 
 
 Community Organizations 
 
 Churches 
 
 Civic Organizations 
 
 Pri vate I ndustry 
 
 D Technical Assistance 
 
 National Trade Organizations 
 Colleges (Business or Law Students) 
 Economic Development Centers of Agencies 
 Private Business Chambers of Commerce 
 
- 36 - 
 
 E. Financial Assistance 
 
 State or Federal Government Funding 
 
 Philanthropic Foundations 
 
 Churches 
 
 Private Business Members 
 
 The sources for assistance listed above are suggestions and should 
 not be perceived as the universe of resources. However, understanding 
 that the organizational process is one which should involve as many com- 
 munity contacts as possible will enable the trade association members 
 and the sponsoring organization to broaden their horizons and increase 
 their credibility throughout the community. 
 
 Continued Financing 
 
 To have successfully called together minority group businessmen 
 doing business in a specific trade, organized an association, developed 
 a constitution and bylaws, and incorporated and elected officers does not 
 imply that the need for finances ceases. The trade association, like any 
 other business, will require continued financing if it is to accomplish 
 i ts objecti ves. 
 
 It is unlikely that an effective association can be run by a 
 totally volunteer staff. It is more unlikely that from among the minority 
 businessmen themselves there will be any who can donate enough time to 
 the management of the association to make it effective. More importantly, 
 the trade association itself cannot be meaningful to its members or the 
 community unless it can translate its efforts into greater profits for 
 the businessman and better services to the community. This means that a 
 program to accomplish these goals must be developed. A program of 
 
- 37 - 
 
 operations is almost synonomous with budget. Budget means money. It 
 will require money to operate a successful trade association program. 
 
 How much money is needed for the association? As much as it takes 
 to accomplish its objectives. The most likely source of revenue for the 
 trade association is dues from the membership. Dues assessments should 
 be large enough to permit the operation of a reasonably effective pro- 
 gram. Dues should not be so high that only those businessmen doing well 
 can afford to belong. 
 
 The payment of dues should not be looked upon by the businessman 
 as a contribution, but as an investment. For this payment he will expect 
 to get something in return. The amount of dues to be paid by each member 
 is not as important as the program the association designs and implements 
 on behalf of the businessmen. It is not unusual to assess members of 
 the association according to their ability to pay. Members with small 
 volume businesses cannot be liable for the same amounts as businessmen 
 who are operating large volume businesses. On the other hand, it would 
 be destructive to the organization to attempt to discriminate against 
 smaller operators by limiting the services they might receive because of 
 a scaled dues plan. 
 
A P P E N D I X 
 
APPENDIX A 
 
 CITY DIRECTORIES OF BLACK BUSINESS 
 
 CALIFORNIA 
 
 Pasadena "Pasadena 
 
 and Opportuni ty 
 647-65 1 North Fair Oaks Avenue 
 Pasadena, California 91103 
 
 San Diego San Diego Urban League 
 
 2958 Imperial Avenue 
 San Diego, California 92113 
 
 San Francisco "Coro Foundation 
 
 760 Market Street 
 
 San Francisco, California 9^102 
 
 "PACT, Inc. 
 593 Market Street, Suite 200 
 San Francisco, California 9**105 
 
 CONNECTICUT 
 
 New Haven "Greater New Haven Business and 
 
 Professional Association 
 226 Dixwel 1 Avenue 
 New Haven, Connecticut 06511 
 
 Stamford "Stamford-Darien Counci 1 of Churches 
 
 36 Bonner 
 Stamford, Connecticut 06902 
 
 DISTRICT OF COLUMBIA 
 
 'Small Business Guidance and Development Center 
 Howard University 
 P. 0. Box 553 
 Washington, D. C. 20001 
 
- 2 - 
 
 ILLINOIS 
 
 Chi cago "Black Book Directory 
 
 1047 West 79th Street 
 Chicago, Illinois 60620 
 
 Chicago Urban League 
 
 4500 South Michigan Avenue 
 
 Chicago, Illinois 60653 
 
 ''Operation Breadbasket (SCLC) 
 366 East 47th Street 
 Chicago, Illinois 60653 
 
 INDIANA 
 
 Anderson "Anderson Urban League 
 
 631 Citizens Bank Building 
 Anderson, Indiana 46010 
 
 Muncie "''Anderson Urban League 
 
 631 Citizens Bank Building 
 Anderson, Indiana 46010 
 
 KENTUCKY 
 
 Loui svi 1 le Kentucky Commission on Human Rights 
 
 Capital Annex Building 
 Louisville, Kentucky 
 
 MARYLAND 
 
 Bal tinr 1 '_ 'Council for Equal Business Opportunity 
 
 1102 Mondawmin Concourse 
 Baltimore, Maryland 21215 
 
- 3 - 
 
 MASSACHUSETTS 
 
 Boston Marty Rachman 
 
 35 Juniper Circle, West Concord 
 Boston, Massachusetts 
 
 "Buy-Black Roxbury Business Association 
 Boston, Massachusetts 
 
 Dorchester "Roxbury Businessmen's Development Corporation 
 
 Suite 16 
 
 58 Bowdoin Avenue 
 Dorchester, Massachusetts 02124 
 
 Ml CHI GAN 
 
 Battle Creek Battle Creek Area Urban League 
 
 502 West Michigan Avenue 
 Battle Creek, Michigan 49017 
 
 Detroi t "Booker T. Washington Business Association 
 
 736 Pall ister 
 Detroit, Michigan 48202 
 
 Inner City Business Improvement Forum 
 6072 Fourteenth Street 
 Detroit, Michigan 48202 
 
 MINNESOTA 
 
 Minn e apol I s "Buy-Black Campaign 
 
 1115 Plymouth Avenue North 
 Minneapolis, Minnesota 5541 
 
 St. Paul St. Paul Urban League 
 
 65 East Kellogg Boulevard 
 St. Paul , Minnesota 55101 
 
- 1+ . 
 
 MISSOURI 
 
 St. Louis Human Development Corporation of St. Louis 
 
 1321 Clark 
 St. Louis, Missouri 63103 
 
 NEW YORK 
 
 Buffalo "University of Buffalo 
 
 166 Beard Avenue 
 
 Buffalo, New York 14204 
 
 OHIO 
 
 CI nci nnati "Urban League of Greater Cincinnati 
 
 2400 Reading Road 
 Cincinnati , Ohio 45202 
 
 Clevel and Heights Citizens for Human Rights 
 
 2310 Westminster 
 Cleveland, Ohio 44115 
 
 PENNSYLVANIA 
 
 Phi 1 -idel phi a "Black House 
 
 1738 West Columbia Avenue 
 Philadelphia, Pennsylvania 19121 
 
 "Urban Market Developers 
 4040 Locust Street 
 Philadelphia, Pennsylvania 19106 
 
 p i tt^burgh Allegheny Conference 
 
 200 Res? Street 
 Pittsburgh, Pennsylvania 15219 
 
- 5 - 
 
 NATIONAL DIRECTORIES OF SPECIAL TYPES OF BLACK BUSINESSES 
 
 Banks National Bankers Association 
 
 4310 Georgia Avenue, N. W. 
 Washington, D. C. 20011 
 
 Contractors General & Specialty Contractors 
 
 Associ ation 
 801 McAl lister Street 
 San Francisco, California 9^102 
 
 Human Relations Consultants "Samuel E. Harris & Associates 
 
 1660 L Street, N. W. 
 Washington, D. C. 20036 
 
 Manufacturers and Interstate "Buy-Black Campaign 
 
 Servi ces 1115 Plymouth Avenue North 
 
 Minneapolis, Minnesota 55^+1! 
 
 Public Relations Consultants ''Maurice Sampson & Associates 
 
 13^6 North Broad Street 
 Philadelphia, Pennsylvania 19121 
 
 Conv in the School of Business and Public Administration Library 
 
 This list was compiled by Thelma Y. 
 Halliday, Librarian, School of Business 
 and Public Administration. 
 
 Howard University - July, 1970 
 
APPENDIX B 
 
 ARTICLES OF INCORPORATION 
 
 ASSOCIATION 
 
 We, the undersigned natural persons of the age of twenty-one (21) 
 years or more, and citizens of the United States, acting as incorporators 
 of a non-profit corporation, adopt the following Articles of Incorpora- 
 tion for such non-profit corporation pursuant to the (State of Incorpora- 
 tion) (State) Non-profit Corporation Act: 
 
 FIRST: The name of the corporation is: 
 
 SECOND: The period of duration of the corporation is perpetual. 
 
 THIRD: The corporation is organized and will be operated for 
 trade association purposes including, but not limited to: 
 
 1. Representing, fostering and protecting the business and 
 professional interest, needs and common objectives of owners of 
 
 2. Encouraging the application of the highest ethical 
 standards and the finest physical appearance for the lines of businesses 
 of the members of the association, and educating the industry as to appro- 
 priate accounting procedures and other guidelines for better business 
 practi ces . 
 
 3. Informing members about improved 
 
 methods and other advancements in the lines of 
 
 business of members 
 
- 2 - 
 
 4. Informing and enlightening the public about, and 
 creating better understanding and appreciation for, the usefulness and 
 value of the services rendered by 
 
 In furtherance and not in limitation of the general powers con- 
 ferred by the laws of the (STATE) and of the objects herein set 
 forth, it is expressly provided that this corporation shall have also, 
 as far as are lawful, the following powers, viz: 
 
 (a) To purchase, lease, hold, sell, mortgage, or 
 otherwise acquire or dispose of such real and personal property as may 
 be deemed necessary for the activities of the Association; to enter 
 into, make, perform, or carry out contracts of every kind with any 
 firm, person, corporation or association necessary for the accomplish- 
 ment of the objects and purposes herein set forth; to do any acts 
 necessary or expedient for carrying on any or all of the objects and 
 purposes of this corporation not forbidden by law, or by this certificate 
 of incorporation, or by its by-laws, or by the laws of the (STATE). 
 
 (b) To have offices and promote and carry on its 
 objects and purposes, within or without the (STATE), and in the states, 
 territories or colonies of the United States and in foreign countries. 
 
 (c) To have al 1 powers that may be conferred upon 
 corporations formed under the (STATE) Non-profit Corporation Act. 
 
 The corporation shall not pursue any purpose or carry on any 
 activities not permitted to be pursued or carried on under the (STATE) 
 Non-profit Corporation Act or by a corporation described in section 501 
 (c) (6) of the Internal Revenue Code of 195^ and exempt from federal 
 
- 3 - 
 
 income tax under section 501 (a) thereof (or the corresponding pro- 
 visions of any future United States Internal Revenue Law). 
 
 FOURTH: The corporation shall have no stockholders. The cor- 
 poration shall have members. 
 
 FIFTH: The corporation shall have one class of members. The 
 conditions and qualifications for membership, the method of admission, 
 and the limitations, rights, powers and duties of members, the dues, 
 assessments and contributions of members, the method of expulsion from 
 or termination of membership, the right to and manner of voting, and 
 other matters pertaining to the officers, directors and membership and 
 the conduct, management and control of the business, affairs, and 
 property of the corporations, shall except as otherwise provided from 
 time to time in the By-Laws of the corporation or any amendments thereto 
 
- k 
 
 Name of Incorporator Address 
 
 Date: 
 
 a Notary Public, hereby 
 
 certify that on this day of 
 
 personally who signed the foregoing document as 
 
 i i. corporators , and that the statements therein contained are true. 
 
 Notary Publ ic 
 
APPENDIX C 
 CONSTITUTION OF THE ASSOCIATION 
 
 ARTICLE I. 
 
 Name, Office and Organizational Year 
 
 Section 1 . Name 
 
 The name of this organization shall be the 
 
 Section 2. Office 
 
 The office of this organization shall be located in the City of 
 
 in the State of 
 
 Section 3. Organizational Year 
 
 The organizational year shall begin on the first day of January of 
 each calendar year and end on the last day of December. 
 
 ARTICLE I I . 
 
 Purpose 
 
 We, as owners and operators of 
 
 associate ourselves for the following 
 
 objects and purposes: To foster and promote the general welfare of 
 
 small independent and to help them 
 
 achieve their common objectives; to be useful as a vehicle for 
 
 cooperative arrangements between the member ; 
 
 to further improve the relationship between the member 
 
 and the general public, and to enlighten and edu- 
 
 cate the public as to the usefulness and value of the services 
 rendered by the member ; to establish appro- 
 priate accounting procedures, and other business practices for 
 member ; to engage in institutional adver- 
 tising; to keep the member informed of infor- 
 mation vital to the industry; and to otherwise 
 
 serve all interests of the members by any and every lawful means. 
 
- 2 - 
 
 ARTICLE I I I 
 
 Membershi p 
 
 Section 1. Qualification for Membership 
 
 Membership shall be open to all businessmen of good character whose 
 
 business is the operation of a or a 
 
 wi thi n the area of 
 
 Section 2. Dues for Membership 
 
 The annual dues for a member with a plant on the premises shall be 
 
 such amount dollars ( ); for a member with a 
 
 dollars ( ) and 
 
 shall be payable in such manner and on such terms as the By-Laws 
 shal 1 prescribe . 
 
 Section 3- 
 
 No member shall be subjected to any assessment or be required to make 
 any payment whatever to this organization other than annual dues (as 
 provided for .in Section 2 of this ARTICLE I I I of this Constitution) 
 without his expressed consent. 
 
 Section k. 
 
 Each business enterprise, irrespective of the nature or means of 
 conducting business, shall be eligible only to a single membership, 
 having a single vote. 
 
 Section 5 • Benef i ts 
 
 Only financial members of the association shall be entitled to 
 share in any benefits or services of the Association except as may 
 be expressly provided from time to time by the Board of Directors. 
 
 Section 6. Admission, Suspension and Exuplsion of Members 
 
 All members shall be admitted, suspended or expelled in accordance 
 with the standards and procedures prescribed in this Constitution 
 and in the By-Laws of this organization. Provided, however, that no 
 
- 3 - 
 
 member (except one dropped for non-payment of dues within such time 
 as may be specified in the By-Laws) shall be suspended or expelled 
 from this organization without: 
 
 1. The Secretary mailing postage pre-paid (by registered 
 mail, return receipt requested) to his last address as 
 shown on the membership records of the organization at 
 least ten (10) days written notice of the specific 
 charges against him and of the date of hearing thereon 
 by the Board of Directors; 
 
 2. An opportunity to be heard in person and with counsel 
 (i f he desi res) ; and 
 
 3. An affirmative finding by the majority of the Board of 
 Directors that his conduct has been prejudicial to the 
 best interests of the organization. 
 
 ARTICLE IV. 
 
 The Board of Directors, The Officers, Elections 
 
 Section 1. The Board of Directors 
 
 The operation of this organization shall be vested in a Board of 
 Directors composed of ( ) members. 
 
 Section 2. The Officers 
 
 The Officers of this organization shall be the President, the Vice- 
 President, the Secretary, the Financial Secretary, and the Treasurer 
 
 Section 3. Election; Powers, Duties and Terms of Office for 
 Elected Posts 
 
 The Officers shall be elected annually by the members of this organi- 
 zation in such manner and with such powers and duties as the By-Laws 
 sha 1 1 prescr i be . 
 
 Section k. Executives 
 
 The association may, by a majority vote of the Board, employ an 
 Executive Secretary and other executives, specialists and employees, 
 none of whom shall be considered officers of the Association. 
 
- h - 
 
 Section 5. Compensation 
 
 All officers and directors shall serve without compensation. The 
 Executive Secretary and other executives, specialists and employees, 
 shall receive such compensation as the Board of Directors from time 
 to time may direct. 
 
 ARTICLE V. 
 
 Commi ttees 
 
 Section 1. Standing Committees 
 
 The standing committees of the Association shall be an executive 
 committee, a legislative committee, membership committee, finance 
 committee and a nominating committee, and such other committees as 
 may be constituted from time to time by the Board of Directors. 
 
 Section 2. Executive Committees 
 
 The executive committee shall consist of the President, the Vice- 
 President, Secretary, Financial Secretary and Treasurer and three 
 members of the Board of Directors elected by a majority vote of 
 the Board of Directors. 
 
 Section 3.. Composition of Committees 
 
 All committees except the Executive Committee herein otherwise pro- 
 vided for shall consist of an odd number of members and shall have 
 as chairman a member of the Board of Directors. 
 
 Section k. Selection of Committee Members 
 
 Members of the standing committees, except the executive committee, 
 shall be appointed by the President, with approval of a majority 
 of the Board of Directors. The membership of all other committees 
 shall be appointed by the President. Each member of a standing 
 committee shall serve during the term of office of the Board of 
 Directors from which the committee chairman is selected. 
 
- 5 - 
 
 ARTICLE VI . 
 
 Meetings 
 
 Section 1. Meetings of the General Membership 
 
 a. The bi-monthly general meeting shall be held on the second 
 Tuesday of the month. 
 
 b. Special Meetings 
 
 Special meetings of the membership shall be called by the President 
 upon the order of the Board of Directors or upon the written re- 
 quest (addressed to the Secretary) of seven (7) members in good 
 standing. Notice of the date, time, place and specified purpose of 
 each special meeting (as fixed by the Board of Directors) shall be 
 mailed by the Secretary to each member in good standing at his last 
 address as shown on the membership records of the organization at 
 least ten (10) days prior to the date set therefore. At least ten 
 (10) members in good standing must be present in person at any 
 special meeting of the membership in order to constitute a quorum. 
 Only the specific business mentioned in the Notice of the Special 
 Meeting can be taken up at any special meeting of the membership. 
 
 Section 2. Meetings of the Board of Directors 
 
 a. The Board of Directors shall hold three meetings; one in the 
 first month of the year, the sixth month, and the eleventh 
 month. The Board, by resolution, may provide for the holding 
 of other regular meetings and may fix the time and place of 
 holding such meetings, but shall meet at least three times a 
 year. 
 
 b. Special Meetings 
 
 Special meetings shall be held whenever called by the President 
 or by six or more directors. 
 
 Section 3. Quorum 
 
 A majority of the whole Board shall constitute a quorum for the 
 
 transaction of business. The Board shall act by a majority of the 
 
 members present at any meeting, except as herein otherwise provided 
 
- 6 - 
 
 Section k. Organization 
 
 At every meeting of the Board, the President, or, in his absence, 
 the Vice-President, or in his absence, a member of the Board 
 designated by him, or in the absence of such designation, a chair- 
 man chosen by a majority of the directors present, shall preside. 
 
 Section 5. Resignation 
 
 Any director may resign any time by giving written notice to the 
 President or the Secretary of the Association or to the Board. 
 Such resignation shall take effect upon the acceptance thereof by 
 the Board of Directors, and the election and qualification of his 
 successor . 
 
 ARTICLE VII. 
 
 Amendments 
 
 This Constitution may be amended at any regular or special meeting 
 of the membership by the affirmative vote of two-thirds (2/3) of the 
 active members in good standing who are present and voting in person 
 Provided, however, that no amendments may be considered or voted on 
 at any regular or special meeting of the membership unless: 
 
 1. A copy of the amendment and notices of the proposed 
 action thereon has been mailed to each active member 
 in good standing at his last address as shown on the 
 membership records of the organization at least ten 
 (10) days prior to the date set for the meeting at 
 which the amendment is to be considered. 
 
APPENDIX D 
 
 BY-LAWS OF THE ASSOCIATION 
 
 ARTICLE 
 
 Membershi p 
 
 Section I . 
 
 Those eligible for active membership in this organization shall be 
 admitted thereto only upon the approval of their written applications 
 for such membership by the affirmative vote of two-thirds (2/3) of the 
 members of the Board of Directors present. However, no such appli- 
 cation can be considered or acted upon by the Board unless accompanied 
 by the initiation fee, ten dollard ($10), in advance. 
 
 Section 2. Suspension or Expulsion of Members 
 
 All members will be suspended or expelled in accordance with the 
 standards and procedures prescribed in Section 6 of ARTICLE I I I of 
 the Constitution of this organization, or by such specific procedures 
 as may be adopted by the Board of Directors 
 
 Section 3- Resignation of Members 
 
 Resignation from membership in the organization shall be in writing 
 and directed to the Secretary. Persons resigning from membership shall 
 not be entitled to a refund of dies paid. 
 
 ARTICLE \ i . 
 
 Dues 
 
 Section 1 . 
 
 The dues for active membership in this organization shall be 
 
 dollars ( ) for a , ( ) for a 
 
 annually All dues are due end payable 
 
 on January 1, and must be paid in fujl by March 31 of each year 
 
Section 2. 
 
 Any member, whose annual dues have not been paid within three months 
 of the due date thereof shall automatically be dropped from member- 
 ship in this organization. 
 
 ARTICLE I I I 
 
 Board of Directors 
 
 Section 1 . General Power 
 
 The business of the association, except as otherwise expressly provided 
 by Charter or by the Constitution, shall be managed by the Board of 
 Directors, which duties may be delegated by it to the Executive Committee 
 It shall keep a record of all meetings. The Board shall have power, by 
 a four-fifth vote of the whole Board, to remove any officer, and by a 
 three-fourths vote of the whole Board any member of any committee who 
 fails, or who is negligent in the performance of the duties assigned. 
 
 Section 2. Qualifications 
 
 Any member of the association shall be eligible for election to the 
 Board of Directors who, at the time of his election, shall be in good 
 standi ng. 
 
 Section 3- Meetings 
 
 The Board of Directors shall hold three meetings; one in the first 
 
 month of the year, the sixth month, and the eleventh month. The Board, 
 by resolution, may provide for the holding of other regular meetings 
 
 and may fix the time and place of holding such meetings, but shall 
 
 meet at least three times a year. Special meetings shall be held when- 
 ever called by the President or by six or more directors. 
 
 Section h. Notice of Meeting 
 
 Notice of the time and place of holding all meetings of the Board shall 
 be mailed to each director, addressed to him at his usual place of 
 business or such other address as he may have designated in a written 
 request filed with the Secretary or communicated to such Director by 
 phone . 
 
- 3 - 
 
 Section 5- Quorum 
 
 A majority of the whole Board shall constitute a quorum for the 
 
 transaction of business. The Board shall act by a majority of the 
 
 members present at any meeting, except as herein otherwise provided, 
 
 Section 6. Organization 
 
 At every meeting of the Board, the President, or, in his absence, 
 the Vice-President, or in his absence, a member of the Board designated 
 by him, or in the absence of such designation, a Chairman chosen by a 
 majority of the directors present, shall preside. 
 
 Section 7- Resignations 
 
 Any director may resign any time by giving written notice to the 
 President or the Secretary of the Association or to the Board. Such 
 resignation shall take effect upon the acceptance thereof by the 
 Board of Directors, and the election and qualification of his successor, 
 
 Section 8. Vacancies 
 
 Except as otherwise provided by statute, any vacancy in the Board 
 arising at any time from any cause shall be filled for the unexpired 
 term at the next regular meeting of the Association from which such 
 director was elected or at a special meeting of the Association called 
 for that purpose. 
 
 Section 9. Removal of Director 
 
 The Board of Directors shall have the power to remove any member at 
 any time with cause by the affirmative vote of four-fifths of the 
 members of the whole Board. 
 
 ARTICLE IV. 
 
 Executive Committee and other Committees 
 
 Section 1. Executive Committee 
 
 The executive committee may exercise all of the powers granted to it 
 by the Board of Directors and subject to the direction and control of 
 that Board. 
 
k - 
 
 Section 2. Nominating Committee 
 
 It shall be the duty of the nominating committee to recommend and 
 nominate officers to the directors at each annual meeting and to 
 perform that function with respect to each vacancy. 
 
 ARTICLE V. 
 
 Off i cers 
 
 Section 1 . Election 
 
 Regular elections of all officers shall be held in November of each 
 year at the general meeting. 
 
 Section 2. Resignations 
 
 Any officer may resign at any time by giving written notice to the 
 President or to the Secretary or to the Board of Directors. Any 
 such resignations shall take effect at the time of the acceptance of 
 such resignations by the Board, and the election and qualification 
 of his successor. Any vacancy shall be filled by either the Board of 
 Directors or in the manner prescribed by the Constitution and these 
 By-Laws, for the original election of such officers, at their respec- 
 tive next regular meetings or special meetings of the Board called 
 for such purpose. 
 
 Section 3- Removal or Suspension of Officers 
 
 Any officer may be removed or suspended from an elective or appointed 
 position provided: 
 
 1. The Secretary mails, postage pre-paid by registered 
 mail, return receipt requested, to his last known 
 address at least ten (10) days notice of the specific 
 charges against him and of date of the hearing by the 
 Board of Directors; 
 
 2. He i s given an opportunity to be heard in person and 
 with counsel if he desires on such charges before the 
 Board of Di rectors; 
 
 3. An affirmative findi.ng by the majority of the Board of 
 Directors that his conduct has been prejudicial to 
 the best interests of the organization. 
 
- 5 - 
 
 Section 3. Duties of Officers 
 (a) President 
 
 The President shall be the chief executive officer of 
 the Association. He shall have general supervision 
 of the business of the Association and over its 
 several officers, subject, however, to the control 
 of the directors. He shall, in general, perform all 
 duties incident to the office of President. 
 
 (b) Vice-President 
 
 The Vice-President shall supervise the activities of 
 all Board committees and in the absence of the Presi- 
 dent shall perform all of the duties of the President. 
 
 (c) Secretary 
 
 The Secretary shall be the custodian of the seal and 
 the records of the Association and shall keep the 
 minutes of all meetings of the membership. In general, 
 he shall perform all duties incident to the office of 
 the Secretary and such other duties as from time to 
 time may be assigned to him by the Board or by the 
 Presi dent . 
 
 (d) Financial Secretary 
 
 The Financial Secretary shall receive all monies 
 collected and issue all membership cards, keep all 
 records of membership status, notify the Secretary 
 in all cases of dues delinquency and report to the 
 Board on the income of the association and the mem- 
 bership condition. All monies are to be given to the 
 Treasurer and a receipt obtained for same. The 
 Treasurer's books and the Financial Secretary's books 
 should correspond. 
 
 (e) Treasurer 
 
 The Treasurer shall have the care and custody of all 
 funds of the Association. He shall deposit all such 
 funds in the name of the Association with such deposi- 
 taries as may be selected by the Board of Directors, 
 and withdrawals therefrom shall be made in such manner 
 as the Board of Directors may, be resolution, provide. 
 He shall exhibit, at all reasonable times, his books 
 of accounts and records to any of the directors of the 
 Association. He shall render a statement to the Board, 
 
- 6 - 
 
 if called upon to do so, and a full financial report 
 at the annual meeting, if called upon to do so. 
 
 He shall give a bond for the faithful discharge of 
 
 his duties in such sum and with such surety or sureties 
 
 as the Board may require. 
 
 ARTICLE VI 
 
 Elections 
 
 Section 1. Nominating Committee 
 
 (a) Not later than thirty (30) days after the first meeting 
 of the year the President shall appoint a nominating 
 committee of five (5) active members. 
 
 (b) The nominating committee shall report to the October 
 meeting of the Board of Directors and said report 
 read at the November general meeting. 
 
 Section 2. Nomination by Petition 
 
 Not later than the November general meeting, an active member may be 
 nominated by a written petition signed by at least seven (7) active 
 members of the organization in good standing, and his name added to 
 the ballot. However, no person can be nominated by a written peti- 
 tion for a post of an officer if he has already been nominated in 
 any way for a different position. 
 
 Section 3- Bal lots. 
 
 Not later than fifteen (1.5) days prior to the December general meeting 
 the Secretary shall mail each active member of the organization in good 
 standing at his last known address a written ballot on which shall be 
 duly listed all nominees, whether duly made by the nominating committee 
 or duly submitted written petitions. 
 
 Section k. Voting 
 
 (a) Shall take p! \cc at the November general membership 
 meet i ng . 
 
 (b) Voting shall je by secret ballot. 
 
- 7 
 
 Section 5. Terms of Office 
 
 (a) Officers shall take office on January first. 
 
 (b) All of the five (5) officers shall serve for a term 
 of one (1) year or until their successors shall be 
 duly elected. 
 
 ARTICLE VI I . 
 
 Meetings 
 
 Section 1. Meetings of the Membership 
 
 Regular and special meetings of the membership shall be held in 
 accordance with Section 1. of ARTICLE VI of the Constitution of this 
 organi zation. 
 
 Section 2. Procedure of all Meeti ngs and the Organization 
 
 Except as otherwise provided for in the Constitution and By-Laws of 
 this organization and insofar as practicable, Robert's Rules of Order 
 Revised shall govern the proceedings of all meetings of the membership 
 of this organization, of the Board of Directors, and all of its corn- 
 mi ttees . 
 
 ARTICLE VI I I 
 
 Amendments 
 
 These By-Laws may be amended at any regular or special meeting of the 
 Board of Directors or the membership on the affirmative vote of a 
 majority of the Board present or of those active members in good 
 standing present. Provided, however, that before any amendment may 
 be considered or voted on by the Board or membership, notice of any 
 proposed change shall have been mailed, postage pre-paid, by the 
 Secretary and at the expense of the organization to each Board member 
 or to each member in good standing at least thirty (30) days before 
 the date set for the meeting at which the proposed amendment is to be 
 acted upon. 
 
PENN STATE UNIVERSITY LIBRARIES 
 
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