A. Introduction

The purpose of the chartering agreement is to clearly define the relationship between NeighborWorks America and NeighborWorks organizations and to delineate the privileges and obligations of network membership.

In subscribing to the terms of a membership charter a NeighborWorks organization:

1. Participates in a common identity which is further served by use of the NeighborWorks service mark.

2. Establishes eligibility for the services and privileges offered to network members.

3. Demonstrates a commitment to a high standard of performance, which minimizes risk and enhances the confidence of the partnership and the community.

B. Requirements for Charter Consideration

To be eligible for consideration for charter, an organization must:

1. Submit an application for charter or for membership assessment.

2. Provide evidence of support from local public sector, private businesses and resident leaders.

3. Have, or be eligible for, 501(c)(3) status with the IRS.

4. Have, or be eligible for, status as a not-for-profit corporation in the state in which it operates.

5. Establish and maintain an organizational structure that reflects a partnership among resident leaders, the private business community and public officials, in which residents are the numeric majority.

6. Designate a geographic territory for operations and demonstrate the capacity and resources to serve the designated area appropriately.

7. Subscribe to a mission that is compatible with that of NeighborWorks America.

C. The Chartering Process

The process of chartering NeighborWorks organizations has four phases:

1.) Assessment and Development Activities

a) Not all applicants for NeighborWorks membership will be granted a charter. Assessments will focus on local support, breadth of vision, potential for productivity, and commitment to serve a population in need. The applicant's mission must be compatible with that of NeighborWorks America.

b) NeighborWorks America will charter only one NeighborWorks organization in a geographic area unless the diversity of need and local resources mandates distinct organizational focus and identity. Organizations may define the geographic area they intend to serve and must demonstrate the capacity to provide effective services to this area through a realistic plan. Evaluation of effective service delivery to the targeted area will be a key monitoring ingredient over time.

c) Development activities, as outlined in the Memorandum of Understanding, will be designed and conducted for new organizations or for established organizations that are currently seeking membership in the NeighborWorks network, as part of the chartering process.

2.) Agreement to Conditions of Charter

All privileges and obligations of charter membership are outlined in the Agreement to Conditions of NeighborWorks network charter, and will be thoroughly reviewed and discussed with each applicant. Operating standards and guidelines will be provided to applicants in the form of manuals, sample documents and summaries. Staff and board members will be oriented to their responsibilities as NeighborWorks members and to the services provided by NeighborWorks America.

3.) Granting of the Charter

The NeighborWorks charter will be formally signed and issued by the Chief Executive Officer of NeighborWorks America subsequent to execution of the Agreement to Conditions of Charter.

4.) Ongoing Evaluation

a) As required by statute, NeighborWorks America will evaluate NeighborWorks organizations formally through regularly scheduled Program Reviews. Annual audits, reports on operating grants and annual and quarterly reports on organizational status are also required.

b) Formal Program Reviews will examine organizational effectiveness in:

- Planning
- Resource Management
- Organizational Oversight
- Management
- Program Services
- Technical Operating Systems

c) The purpose of ongoing evaluation is to ensure that NeighborWorks organizations maintain high standards of operations and that they remain a vital, inclusionary, integral part of their neighborhoods and their communities.

D. Charter Documents

There will be two charter documents: The NeighborWorks Charter and the Agreement to Conditions of Charter.

1.) The NeighborWorks Charter

This certificate clearly articulates the relationship between NeighborWorks America and the NeighborWorks organization and reaffirms corporate mission. The NeighborWorks Charter is a formal statement of relationship, signed by the Chief Executive Officer of NeighborWorks America and designed for public display.

2.) Agreement to Conditions of Charter

This document is the basic contract signed by the NeighborWorks organization and by NeighborWorks America, which acknowledges acceptance of the privileges and obligations of NeighborWorks membership. This agreement outlines the details of standards and requirements, which are referenced in the Charter.

E. Privileges of Chartered NeighborWorks Membership

Privileges of NeighborWorks membership will be referenced in the NeighborWorks Charter and will be outlined in the Agreement to Conditions of Charter.

1.) Privileges of Charter Membership

Chartered NeighborWorks organizations are eligible for:

a) Technical and support services provided by NeighborWorks America

b) Competitive grants and other financial assistance

c) Scholarships for training programs and events

d) Publications disseminated by NeighborWorks America and other available information services

e) Participation in NeighborWorks America-sponsored conferences, institutes and workshops

f) Access to services and resources of Neighborhood Housing Services of America

g) Use of the NeighborWorks Service Mark

h) Other NeighborWorks America services and resources that may become available.

F. Duration of Charter Membership

Membership Charters shall remain in effect as long as the NeighborWorks organization continues to meet its obligations under the Agreement to Conditions of Charter. The purpose of NeighborWorks America's ongoing monitoring is to support and ensure the ongoing strength of the NeighborWorks network and of each of its members.

The first response to a determination of noncompliance will always be developmental. If a NeighborWorks organization fails to meet key obligations or standards, NeighborWorks America will assist to identify the problem, to analyze possible solutions and to provide technical or financial resources to assist in remedying the situation where appropriate. Corrective Action Plans and timetables will be designed in instances where warranted.

G. Provisional Status

1.) NeighborWorks America reserves the right to declare a NeighborWorks organization's Charter in Provisional Status if there has been flagrant abuse of fiduciary responsibility or if the organization fails to rectify serious problems as outlined in a Corrective Action Plan within the agreed upon time frame.

2.) A NeighborWorks organization that has been placed in Provisional Status will receive notice of this action in writing with a specific outline of what is required in order to regain status as a member in good standing and a timeframe within which these requirements must be met. If the NeighborWorks organization does not demonstrate satisfactory evidence of remedy within the stipulated time frame, NeighborWorks America may consider revoking the member's Charter.

3.) Members who are declared in Provisional Status relinquish all membership privileges except those that may be approved by NeighborWorks America's district directors and deemed necessary to regain full membership status (e.g., specific training or technical assistance).