The Co-op Experiment
The Co-op Experiment
Dr. Aaron Blocher-Rubin, Founder & CEO
On August 15th, at the Annual Meeting for AZA Parents, a vote was conducted on a proposal to change the governing bylaws of Arizona Autism United. To incentivize good attendance, the first 50 families to arrive received a free gift card from www.Autism-Products.com. 62 families were present, exceeding the minimum quorum requirement of 50, and they unanimously approved the change. AZA United is now structured as a traditional nonprofit charity. We are no longer a Human Service Co-op.
In 2005, I worked with a group of families to create the organization that became AZA United. We began as a support group for Spanish speaking autism families. We were approached by a group who called themselves the “Federated Human Service Cooperative,” or Federated HSC for short. They wanted to help us create a co-op agency for families who received DDD services. They were a small team – husband, wife, and daughter – with years of experience in the DDD world. They believed there was a better way for provider agencies to operate, so that families could have more control over their services. It was a noble idea – to give the power to the people, so that families receiving services collectively owned and controlled the agency. If policies or priorities were not meeting their needs, they would have the power to change them, through a democratic process. This group had approached the federal government and earned a 3-year grant, to create the Federated HSC and help small grassroots groups around the state form their own Human Service Co-ops. We were number 3.
With the help of the Federated HSC, we got up and running in early 2006. We began as an actual cooperative, but quickly found that this model was problematic for our goals. Families seeking services were confused by the notion of owning the company. Some were worried about their tax implications. The plan was never to dish out profits, so we decided that a nonprofit structure would make more sense (and save some money to go back into programs). With the help of the Volunteer Lawyers Program, we converted to a 501(c)3 charitable nonprofit organization in 2008. We wanted to preserve the HSC model, so our new bylaws kept key elements from the cooperative by establishing service recipients as members, and requiring that 80% of the board be AZA parents. This family-centered approach has been a guiding philosophy for AZA United ever since, setting the tone for the culture of the organization as one that listens and responds to the identified needs of families in our community.
We have held an Annual Meeting for Parents every year since 2006. The bylaws actually required it. Agenda items always included organizational updates, parent feedback, financial reports, and board member elections. We tried a few fun things to make it more appealing for families, such as hosting it at the Children’s Museum of Phoenix and the Farm at South Mountain. We never got big turnouts, but there were always a few loyal families who made the effort to be involved.
Meanwhile, the Board of Directors plugged along, learning the ropes of what it takes to govern a nonprofit organization. New parents continually stepped up and offered to help as we evolved, each bringing their unique perspectives and skills to help the board improve. Last year, we decided it was time to dust off those old bylaws and give them a good re-read, to make sure they were up to date and still a good fit as we continue to expand. Rather than assigning unrealistic homework, I insisted that we read them together out loud as a group during our board meetings, so we could discuss questions and comments as we thought of them. It wasn’t the most exciting exercise at first, but as we got more into it we began to realize some things definitely needed to change.
At first we thought a few minor tweaks would be enough. But then, the more we discussed it, we had to acknowledge that the co-op model just wasn’t really working. Many parents and community members would say, “I love that you’re a co-op!” But if I asked them what that means, they couldn’t explain it. Truthfully, I could barely explain it. Parents being on the board was pretty straightforward, but the rest was a big grey area. What does it mean to be a member of the co-op? What exactly do families vote on? How would this work if AZA United served hundreds, or even thousands, of families across the state? Is anyone benefiting from us being a co-op? Does anyone really care?
The HSC concept was a fascinating idea, but it didn’t survive. The other startups have since gone under, and the Federated has been discontinued. They ran out of funds, and then ran out of gas. It was a good idea, and it will always be a part of who we are, but times have changed. Once our board came to that realization, we were able to approach the situation with a blank slate and create a structure based on what AZA United is today, and where we think it is going. With the help of the best nonprofit law firm in Arizona, we drafted completely new bylaws designed to preserve our parent-led, family-centered culture, while also opening the doors to greater flexibility and new opportunity. At the rate we are growing, the board has recognized the criticality of ensuring that we can conduct business efficiently.
So what exactly has changed? In the new bylaws, there are no voting members, other than the board. In 10 years, we never really saw much interest from families in the concept of “voting rights,” so this change basically gives the board the ability to act on major decisions when opportunities or needs arise, rather than having to call a special membership meeting with at least 50 families in attendance, which is difficult, costly, and time consuming. We no longer require that 80% of the board be AZA parents, but we do specify a preference that a majority of the board be parents. With this more balanced approach, we can maintain the spirit of parent leadership that has helped make us great, but also open new doors of opportunity by including individuals with high level skills, contacts and resources that want to help take the organization even further. The existing board now has the power to elect new board members on an ongoing basis, so that we can evolve as quickly as needed. We also established term limits to ensure that board members change over time, which is a nonprofit best practice. Finally, if the bylaws ever need to be amended again as things continue to change, the board will be able to make that happen.
One thing we talked about at this year’s Annual Meeting was our intent to relaunch AZAP – the AZA Parents Association. During the entire conversation about changing the bylaws, our board members always came back to the vision of increasing parent involvement across the organization. That was the whole point of the co-op model, and we think a strong Parents Association will work even better. Look for announcements in the coming months about how to get involved with AZAP. Members will be able to speak up, chip in, and help each other out, all in the name of advancing our mission to help as many families as possible with individualized supports.
Aaron Blocher-Rubin, PhD, BCBA, is the founder & CEO of Arizona Autism United. You can reach him at Aaron@AZAunited.org. He would love to hear from you!
